(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November ~~5, 2018,~~4, 2019, there were approximately 1111.5 million outstanding shares of Class A common stock, approximately ~~5,000~~76,000 outstanding shares of Class T common stock, ~~and~~ approximately ~~32,000~~85,000 outstanding shares of Class W common stock, approximately 0.5 million outstanding shares of Class Y common stock, and 0.2 million outstanding shares of Class Z common stock of the registrant.

Certain statements contained in this Form 10-Q of Strategic Student & Senior Housing Trust, Inc., other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such statements include, in particular, statements about our plans, strategies, and prospects and are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “seek,” “continue,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this report is filed with the Securities and Exchange Commission. We cannot guarantee the accuracy of any such forward-looking statements contained in this Form 10-Q, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Any such forward-looking statements are subject to risks, uncertainties, and other factors and are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual results, our ability to meet such forward-looking statements, including our ability to generate positive cash flow from operations and provide distributions to stockholders, and our ability to find suitable investment properties, may be significantly hindered. See the risk factors identified in the “Risk Factors” section of our ~~Registration Statement~~Annual Report on Form ~~S-11 (SEC Registration No. 333-220646),~~10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission, as supplemented by the risk factors included in Part II, Item 1A of this Form 10-Q, for a discussion of some, although not all, of the risks and uncertainties that could cause actual results to differ materially from those presented in our forward-looking statements.

The information furnished in the accompanying unaudited consolidated balance sheets and related consolidated statements of operations, equity and cash flows reflects all adjustments (consisting of normal and recurring adjustments) that are, in management’s opinion, necessary for a fair and consistent presentation of the aforementioned consolidated financial statements.

The accompanying consolidated financial statements should be read in conjunction with the notes to our consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this report on Form 10-Q. The accompanying consolidated financial statements should also be read in conjunction with our consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our ~~Registration Statement~~Annual Report on Form ~~S-11 (SEC Registration No. 333-220646).~~10-K for the year ended December 31, 2018. Our results of operations for the ~~three and~~ nine months ended September 30, ~~2018~~2019 are not necessarily indicative of the operating results expected for the full year.

	September 30, 2018 (Unaudited)			December 31, 2017			September 30, 2019 (Unaudited)			December 31, 2018
ASSETS
Real estate facilities:
Land	$	20,688,000		$	8,683,000		$	20,688,000		$	20,688,000
Buildings		221,716,391			83,026,000			222,636,328			221,716,391
Site improvements		3,680,000			1,511,000			3,686,917			3,685,000
Furniture, fixtures and equipment		9,567,851			5,038,516			10,236,370			9,953,212
		255,652,242			98,258,516			257,247,615			256,042,603
Accumulated depreciation		(5,189,262	)		(1,254,849	)		(13,149,060	)		(7,153,132	)
								244,098,555			248,889,471
Construction in process								10,739,300			2,333,331
Real estate facilities, net		250,462,980			97,003,667			254,837,855			251,222,802
Cash and cash equivalents		8,400,329			10,371,998			7,474,619			8,159,408
Restricted cash		842,106			—			4,138,360			3,113,203
Other assets		4,241,669			4,006,881			3,804,052			3,745,094
Intangible assets, net		13,445,265			3,743,640			6,219,326			11,729,108
Total assets	$	277,392,349		$	115,126,186		$	276,474,212		$	277,969,615
LIABILITIES AND EQUITY
Debt, net	$	202,111,681		$	52,299,638		$	208,764,186		$	203,735,898
Accounts payable and accrued liabilities		4,778,272			1,556,415			6,626,715			4,027,720
Due to affiliates		2,688,755			246,958			7,567,031			4,237,666
Distributions payable		653,431			463,848			1,660,733			908,046
Total liabilities		210,232,139			54,566,859			224,618,665			212,909,330
Commitments and contingencies (Note 9)
Commitments and contingencies (Note 8)
Redeemable common stock		2,087,530			303,844			4,150,958			2,659,654
Preferred equity in our Operating Partnership		6,309,097			—			10,130,654			10,095,708
Equity:
Strategic Student & Senior Housing Trust, Inc. equity:
Preferred stock, $0.001 par value; 200,000,000 shares authorized; none issued and outstanding at September 30, 2018 and December 31, 2017		—			—
Class A Common stock, $0.001 par value; 315,000,000 shares authorized; 10,987,493 and 8,948,551 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively		10,987			8,948
Class T Common stock, $0.001 par value; 315,000,000 shares authorized; none issued and outstanding at September 30, 2018 and December 31, 2017		—			—
Class W Common stock, $0.001 par value; 70,000,000 shares authorized; 26,809 and none issued and outstanding at September 30, 2018 and December 31, 2017, respectively		27			—
Preferred stock, $0.001 par value; 200,000,000 shares authorized; NaN issued and outstanding at September 30, 2019 and December 31, 2018								—			—
Class A Common stock, $0.001 par value; 245,000,000 shares authorized; 11,516,609 and 11,122,135 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively								11,517			11,122
Class T Common stock, $0.001 par value; 115,000,000 shares authorized; 76,393 and 36,299 issued and outstanding at September 30, 2019 and December 31, 2018, respectively								76			36
Class W Common stock, $0.001 par value; 70,000,000 shares authorized; 84,854 and 43,996 issued and outstanding at September 30, 2019 and December 31, 2018, respectively								85			44
Class Y Common stock, $0.001 par value; 200,000,000 shares authorized; 261,422 and NaN issued and outstanding at September 30, 2019 and December 31, 2018, respectively								261			—
Class Z Common stock, $0.001 par value; 70,000,000 shares authorized; 143,713 and NaN issued and outstanding at September 30, 2019 and December 31, 2018, respectively								144			—
Additional paid-in capital		83,545,978			68,799,264			89,015,249			83,533,060
Distributions		(6,247,595	)		(1,379,950	)		(13,320,596	)		(7,981,638	)
Accumulated deficit		(17,567,759	)		(6,233,945	)		(37,094,883	)		(22,263,678	)
Total Strategic Student & Senior Housing Trust, Inc. equity		59,741,638			61,194,317			38,611,853			53,298,946
Noncontrolling interests in our Operating Partnership		(978,055	)		(938,834	)		(1,037,918	)		(994,023	)
Total equity		58,763,583			60,255,483			37,573,935			52,304,923
Total liabilities and equity	$	277,392,349		$	115,126,186		$	276,474,212		$	277,969,615

Three Months Ended September 30,

Nine Months Ended September 30,

2018

2017

2018

2017

Revenues:

Leasing and related revenues – student
$
1,841,243

$
1,324,885

$
6,415,533

$
1,379,330

Leasing and related revenues – senior

4,149,750

—

8,496,829

—

Total revenues

5,990,993

1,324,885

14,912,362

1,379,330

Operating expenses:

Property operating expenses – student

1,218,285

566,346

3,106,101

580,992

Property operating expenses – senior

2,691,884

—

5,456,860

—

Property operating expenses – affiliates

485,587

47,792

866,256

49,336

General and administrative

490,894

201,556

1,330,307

291,521

Depreciation

1,559,979

433,862

3,934,413

447,896

Intangible amortization expense

1,841,542

885,401

6,311,376

916,560

Acquisition expenses – affiliates

57,538

977,081

148,736

2,225,762

Other property acquisition expenses

34,602

203,598

304,483

380,958

Total operating expenses

8,380,311

3,315,636

21,458,532

4,893,025

Operating loss

(2,389,318
)

(1,990,751
)

(6,546,170
)

(3,513,695
)
Other income (expense):

Interest expense

(1,804,072
)

(496,608
)

(4,110,085
)

(516,651
)
Interest expense – debt issuance costs

(216,022
)

(464,841
)

(540,404
)

(480,069
)
Other

(31,154
)

(2,803
)

(64,003
)

(9,402
)
Net loss

(4,440,566
)

(2,955,003
)

(11,260,662
)

(4,519,817
)
Less: Distributions to preferred unitholders in our Operating Partnership

(88,874
)

(132,044
)

(92,543
)

(136,282
)
Less: Accretion of preferred equity costs

(7,344
)

(33,176
)

(7,981
)

(35,059
)
Net loss attributable to the noncontrolling interests in our Operating Partnership

10,410

351,934

27,372

1,137,402

Net loss attributable to Strategic Student & Senior Housing Trust, Inc. common stockholders
$
(4,526,374
)

$
(2,768,289
)

$
(11,333,814
)

$
(3,553,756
)
Net loss per Class A share – basic and diluted
$
(0.41
)

$
(1.39
)

$
(1.08
)

$
(6.15
)
Net loss per Class T share – basic and diluted
$
—

$
—

$
—

$
—

Net loss per Class W share – basic and diluted
$
(0.41
)

$
—

$
(1.08
)

$
—

Weighted average Class A shares outstanding – basic and diluted

10,925,932

1,987,757

10,485,885

577,906

Weighted average Class T shares outstanding – basic and diluted

—

—

—

—

Weighted average Class W shares outstanding – basic and diluted

12,003

—

4,045

—

Common Stock

Class A

Class T

Class W

Number of
Shares

Common
Stock
Par Value

Number of
Shares

Common
Stock
Par Value

Number of
Shares

Common
Stock
Par Value

Additional
Paid-in
Capital

Distributions

Accumulated
Deficit

Total
Strategic
Student & Senior
Housing Trust,
Inc. Equity

Non-controlling
Interests in our
Operating Partnership

Total
Equity

Preferred Equity

Redeemable
Common
Stock

Balance as of December 31, 2017

8,948,551

$
8,948

—

$
—

—

$
—

$
68,799,264

$
(1,379,950
)
$
(6,233,945
)
$
61,194,317

$
(938,834
)
$
60,255,483

$
—

$
303,844

Gross proceeds from issuance of
   common stock

1,838,472

1,838

—

—

26,809

27

16,989,713

—

—

16,991,578

—

16,991,578

—

—

Offering costs

—

—

—

—

—

—

(2,248,180
)

—

—

(2,248,180
)

—

(2,248,180
)

—

—

Changes to redeemable common
   stock

—

—

—

—

—

—

(1,783,686
)

—

—

(1,783,686
)

—

(1,783,686
)

—

1,783,686

Distributions

—

—

—

—

—

—

—

(4,867,645
)

—

(4,867,645
)

—

(4,867,645
)

—

—

Distributions to noncontrolling
   interests

—

—

—

—

—

—

—

—

—

—

(11,849
)

(11,849
)

—

—

Distributions to preferred
   unitholders in our Operating
   Partnership

—

—

—

—

—

—

—

—

—

—

—

—

(92,543
)

—

Issuance of shares for distribution
   reinvestment plan

192,970

193

—

—

—

—

1,783,493

—

—

1,783,686

—

1,783,686

—

—

Issuance of restricted stock

7,500

8

—

—

—

—

—

—

—

8

—

8

—

—

Stock based compensation expense

—

—

—

—

—

—

5,374

—

—

5,374

—

5,374

—

—

Net loss attributable to Strategic
   Student & Senior Housing Trust,
   Inc.

—

—

—

—

—

—

—

—

(11,333,814
)

(11,333,814
)

—

(11,333,814
)

92,543

—

Net loss attributable to the
   noncontrolling interests

—

—

—

—

—

—

—

—

—

—

(27,372
)

(27,372
)

—

—

Issuance of preferred equity in our
   Operating Partnership

—

—

—

—

—

—

—

—

—

—

—

—

6,301,116

—

Accretion of non-cash preferred
   equity issuance costs

—

—

—

—

—

—

—

—

—

—

—

—

7,981

—

Balance as of September 30, 2018

10,987,493

$
10,987

—

$
—

26,809

$
27

$
83,545,978

$
(6,247,595
)
$
(17,567,759
)
$
59,741,638

$
(978,055
)
$
58,763,583

$
6,309,097

$
2,087,530

Nine Months Ended September 30,

2018

2017

Cash flows from operating activities:

Net loss

$
(11,260,662
)

$
(4,519,817
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

10,786,193

1,844,525

Increase (decrease) in cash, cash equivalents, and restricted cash from changes in assets and liabilities:

Other assets

(823,490
)

(162,091
)
Accounts payable and accrued liabilities

2,758,122

839,144

Due to affiliates

534,658

1,374,571

Net cash provided by (used in) operating activities

1,994,821

(623,668
)
Cash flows from investing activities:

Purchase of real estate

(170,123,441
)

(103,494,500
)
Additions to real estate

(303,285
)

—

Net cash used in investing activities

(170,426,726
)

(103,494,500
)
Cash flows from financing activities:

Proceeds from issuance of non-revolving mortgage debt

110,105,000

53,000,000

Proceeds from issuance of KeyBank Bridge Loans

51,500,000

39,896,363

Principal payments of KeyBank Bridge Loans

(10,148,136
)

(22,296,363
)
Debt issuance costs

(2,349,937
)

(1,228,799
)
Issuance of preferred equity in our Operating Partnership

6,301,116

5,650,000

Gross proceeds from issuance of common stock

16,798,588

40,063,542

Private offering costs

(1,535,689
)

(3,576,640
)
Public offering costs

(369,831
)

—

Distributions paid to common stockholders

(2,989,432
)

(47,158
)
Distributions paid to preferred unitholders in our Operating Partnership

(9,337
)

(136,282
)
Issuance of noncontrolling interest in our Operating Partnership

—

199,000

Net cash provided by financing activities

167,302,342

111,523,663

Net change in cash, cash equivalents, and restricted cash

(1,129,563
)

7,405,495

Cash, cash equivalents, and restricted cash, beginning of period

10,371,998

2,000

Cash, cash equivalents, and restricted cash, end of period

$
9,242,435

$
7,407,495

Supplemental disclosures and non-cash transactions:

Cash paid for interest

$
3,898,287

$
516,651

Debt issuance costs included in due to affiliates

$
—

$
240,400

Debt issuance costs included in accounts payable and accrued liabilities

$
16,095

$
59,500

Deposits applied to purchase of real estate

$
1,000,000

$
—

Acquisition costs included in due to affiliates

$
1,980,000

$
—

Offering costs included in accounts payable and accrued liabilities or due to affiliates

$
588,161

$
643,768

Non-cash preferred equity issuance in our Operating Partnership

$
63,011

$
1,072,055

Distributions payable

$
653,431

$
190,761

Issuance of shares pursuant to distribution reinvestment plan

$
1,783,686

$
22,257

Public offering costs previously included in other assets

$
722,840

$
—

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Revenues:
Leasing and related revenues – student	$	1,689,154		$	1,841,243		$	5,748,629		$	6,415,533
Leasing and related revenues – senior		6,587,994			4,149,750			19,361,418			8,496,829
Total revenues		8,277,148			5,990,993			25,110,047			14,912,362
Operating expenses:
Property operating expenses – student		1,215,998			1,218,285			3,073,608			3,106,101
Property operating expenses – senior		4,328,495			2,691,884			12,475,375			5,456,860
Property operating expenses – affiliates		695,803			485,587			2,077,710			866,256
General and administrative		632,996			490,894			1,815,542			1,330,307
Depreciation		2,027,243			1,559,979			5,995,928			3,934,413
Intangible amortization expense		1,836,354			1,841,542			5,509,781			6,311,376
Acquisition expenses – affiliates		—			57,538			—			148,736
Other property acquisition expenses		—			34,602			—			304,483
Total operating expenses		10,736,889			8,380,311			30,947,944			21,458,532
Operating loss		(2,459,741	)		(2,389,318	)		(5,837,897	)		(6,546,170	)
Other income (expense):
Interest expense		(2,534,017	)		(1,804,072	)		(7,663,198	)		(4,110,085	)
Interest expense – debt issuance costs		(207,942	)		(216,022	)		(591,310	)		(540,404	)
Other		6,635			(31,154	)		(2,122	)		(64,003	)
Net loss		(5,195,065	)		(4,440,566	)		(14,094,527	)		(11,260,662	)
Less: Distributions to preferred unitholders in our Operating Partnership		(251,730	)		(88,874	)		(733,781	)		(92,543	)
Less: Accretion of preferred equity costs		(11,649	)		(7,344	)		(34,947	)		(7,981	)
Net loss attributable to the noncontrolling interests in our Operating Partnership		12,195			10,410			32,048			27,372
Net loss attributable to Strategic Student & Senior Housing Trust, Inc. common stockholders	$	(5,446,249	)	$	(4,526,374	)	$	(14,831,207	)	$	(11,333,814	)
Net loss per Class A share – basic and diluted	$	(0.46	)	$	(0.41	)	$	(1.29	)	$	(1.08	)
Net loss per Class T share – basic and diluted	$	(0.46	)	$	—		$	(1.29	)	$	—
Net loss per Class W share – basic and diluted	$	(0.46	)	$	(0.41	)	$	(1.29	)	$	(1.08	)
Net loss per Class Y share – basic and diluted	$	(0.46	)	$	—		$	(1.29	)	$	—
Net loss per Class Z share – basic and diluted	$	(0.46	)	$	—		$	(1.29	)	$	—
Weighted average Class A shares outstanding – basic and diluted		11,480,300			10,925,932			11,361,823			10,485,885
Weighted average Class T shares outstanding – basic and diluted		75,470			—			59,826			—
Weighted average Class W shares outstanding – basic and diluted		84,576			12,003			75,070			4,045
Weighted average Class Y shares outstanding – basic and diluted		77,670			—			26,175			—
Weighted average Class Z shares outstanding – basic and diluted		45,344			—			15,281			—

	Common Stock
	Class A				Class T				Class W
	Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Additional Paid-in Capital			Distributions			Accumulated Deficit			Total Strategic Student & Senior Housing Trust, Inc. Equity			Noncontrolling Interests in our Operating Partnership			Total Equity			Preferred Equity in our Operating Partnership			Redeemable Common Stock
Balance as of December 31, 2017		8,948,551	$	8,948		—	$	—		—	$	—	$	68,799,264		$	(1,379,950	)	$	(6,233,945	)	$	61,194,317		$	(938,834	)	$	60,255,483		$	—		$	303,844
Gross proceeds from issuance of common stock		1,733,591		1,734		—		—		—		—		15,738,296			—			—			15,740,030			—			15,740,030			—			—
Offering costs		—		—		—		—		—		—		(1,395,269	)		—			—			(1,395,269	)		—			(1,395,269	)		—			—
Changes to redeemable common stock		—		—		—		—		—		—		(531,268	)		—			—			(531,268	)		—			(531,268	)		—			531,268
Distributions		—		—		—		—		—		—		—			(1,482,380	)		—			(1,482,380	)		—			(1,482,380	)		—			—
Distributions to noncontrolling interests		—		—		—		—		—		—		—			—			—			—			(3,907	)		(3,907	)		—			—
Issuance of shares for distribution reinvestment plan		60,516		61		—		—		—		—		531,207			—			—			531,268			—			531,268			—			—
Net loss attributable to Strategic Student & Senior Housing Trust, Inc.		—		—		—		—		—		—		—			—			(2,726,345	)		(2,726,345	)		—			(2,726,345	)		—			—
Net loss attributable to the noncontrolling interests		—		—		—		—		—		—		—			—			—			—			(7,275	)		(7,275	)		—			—
Balance as of March 31, 2018		10,742,658		10,743		—		—		—		—		83,142,230			(2,862,330	)		(8,960,290	)		71,330,353			(950,016	)		70,380,337			—			835,112
Gross proceeds from issuance of common stock		54,006		54		—		—		—		—		499,494			—			—			499,548			—			499,548			—			—
Offering costs		—		—		—		—		—		—		(97,580	)		—			—			(97,580	)		—			(97,580	)		—			—
Changes to redeemable common stock		—		—		—		—		—		—		(635,442	)		—			—			(635,442	)		—			(635,442	)		—			635,442
Distributions		—		—		—		—		—		—		—			(1,674,630	)		—			(1,674,630	)		—			(1,674,630	)		—			—
Distributions to noncontrolling interests		—		—		—		—		—		—		—			—			—			—			(3,949	)		(3,949	)		—			—
Distributions to preferred unitholders in our Operating Partnership		—		—		—		—		—		—		—			—			—			—			—			—			(3,669	)		—
Issuance of shares for distribution reinvestment plan		69,595		69		—		—		—		—		635,373			—			—			635,442			—			635,442			—			—
Issuance of restricted stock		7,500		8		—		—		—		—		—			—			—			8			—			8			—			—
Stock based compensation expense		—		—		—		—		—		—		968			—			—			968			—			968			—			—
Net loss attributable to Strategic Student & Senior Housing Trust, Inc.		—		—		—		—		—		—		—			—			(4,081,095	)		(4,081,095	)		—			(4,081,095	)		3,669			—
Net loss attributable to the noncontrolling interests		—		—		—		—		—		—		—			—			—			—			(9,687	)		(9,687	)		—			—
Issuance of preferred equity in our Operating Partnership		—		—		—		—		—		—		—			—			—			—			—			—			610,000			—
Accretion of non-cash preferred equity issuance costs		—		—		—		—		—		—		—			—			—			—			—			—			637			—
Balance as of June 30, 2018		10,873,759		10,874		—		—		—		—		83,545,043			(4,536,960	)		(13,041,385	)		65,977,572			(963,652	)		65,013,920			610,637			1,470,554

	Common Stock
	Class A				Class T				Class W
	Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Additional Paid-in Capital			Distributions			Accumulated Deficit			Total Strategic Student & Senior Housing Trust, Inc. Equity			Noncontrolling Interests in our Operating Partnership			Total Equity			Preferred Equity in our Operating Partnership			Redeemable Common Stock
Balance as of June 30, 2018		10,873,759		10,874		—		—		—		—		83,545,043			(4,536,960	)		(13,041,385	)		65,977,572			(963,652	)		65,013,920			610,637			1,470,554
Gross proceeds from issuance of common stock		50,875		50		—		—		26,809		27		751,923			—			—			752,000			—			752,000			—			—
Offering costs		—		—		—		—		—		—		(755,331	)		—			—			(755,331	)		—			(755,331	)		—			—
Changes to redeemable common stock		—		—		—		—				—		(616,976	)		—			—			(616,976	)		—			(616,976	)		—			616,976
Distributions		—		—		—		—		—		—		—			(1,710,635	)		—			(1,710,635	)		—			(1,710,635	)		—			—
Distributions to noncontrolling interests		—		—		—		—		—		—		—			—			—			—			(3,993	)		(3,993	)		—			—
Distributions to preferred unitholders in our Operating Partnership		—		—		—		—		—		—		—			—			—			—			—			—			(88,874	)		—
Issuance of shares for distribution reinvestment plan		62,859		63		—		—		—		—		616,913			—			—			616,976			—			616,976			—			—
Stock based compensation expense		—		—		—		—		—		—		4,406			—			—			4,406			—			4,406			—			—
Net loss attributable to Strategic Student & Senior Housing Trust, Inc.		—		—		—		—		—		—		—			—			(4,526,374	)		(4,526,374	)		—			(4,526,374	)		88,874			—
Net loss attributable to the noncontrolling interests		—		—		—				—		—		—			—			—			—			(10,410	)		(10,410	)		—			—
Issuance of preferred equity in our Operating Partnership		—		—		—		—		—				—			—			—			—			—			—			5,691,116			—
Accretion of non-cash preferred equity issuance costs		—		—		—		—		—		—		—			—			—			—			—			—			7,344			—
Balance as of September 30, 2018		10,987,493	$	10,987		—	$	—		26,809	$	27	$	83,545,978		$	(6,247,595	)	$	(17,567,759	)	$	59,741,638		$	(978,055	)	$	58,763,583		$	6,309,097		$	2,087,530

	Common Stock
	Class A				Class T				Class W				Class Y				Class Z
	Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Additional Paid-in Capital			Distributions			Accumulated Deficit			Total Strategic Student & Senior Housing Trust, Inc. Equity			Noncontrolling Interests in our Operating Partnership			Total Equity			Preferred Equity in our Operating Partnership			Redeemable Common Stock
Balance as of December 31, 2018		11,122,135	$	11,122		36,299	$	36		43,996	$	44		—		—		—		—	$	83,533,060		$	(7,981,638	)	$	(22,263,678	)	$	53,298,946		$	(994,023	)	$	52,304,923		$	10,095,708		$	2,659,654
Gross proceeds from issuance of common stock		159,655		160		15,500		16		22,872		23		—		—		—		—		1,993,183			—			—			1,993,382			—			1,993,382			—			—
Offering costs		—		—		—		—		—		—		—		—		—		—		(425,357	)		—			—			(425,357	)		—			(425,357	)		—			—
Reimbursement of offering costs by Advisor		—		—		—		—		—		—		—		—		—		—		6,470			—			—			6,470			—			6,470			—			—
Changes to redeemable common stock		—		—		—		—		—		—		—		—		—		—		(565,651	)		��			—			(565,651	)		—			(565,651	)		—			565,651
Redemptions of common stock		—		—		—		—		—		—		—		—		—		—		—			—			—			—			—			—			—			(48,600	)
Distributions		—		—		—		—		—		—		—		—		—		—		—			(1,726,681	)		—			(1,726,681	)		—			(1,726,681	)		—			—
Distributions to noncontrolling interests		—		—		—		—		—		—		—		—		—		—		—			—			—			—			(2,690	)		(2,690	)		—			—
Distributions to preferred unitholders in our Operating Partnership		—		—		—		—		—		—		—		—		—		—		—			—			—			—			—			—			(238,240	)		—
Issuance of shares for distribution reinvestment plan		57,271		57		220		—		184		—		—		—		—		—		565,594			—			—			565,651			—			565,651			—			—
Stock based compensation expense		—		—		—		—		—		—		—		—		—		—		4,406			—			—			4,406			—			4,406			—			—
Net loss attributable to Strategic Student & Senior Housing Trust, Inc.		—		—		—		—		—		—		—		—		—		—		—			—			(4,740,781	)		(4,740,781	)		—			(4,740,781	)		238,240			—
Net loss attributable to the noncontrolling interests		—		—		—		—		—		—		—		—		—		—		—			—			—			—			(9,517	)		(9,517	)		—			—
Accretion of non-cash preferred equity issuance costs		—		—		—		—		—		—		—		—		—		—		—			—			—			—			—			—			11,649			—
Balance as of March 31, 2019		11,339,061		11,339		52,019		52		67,052		67		—		—		—		—		85,111,705			(9,708,319	)		(27,004,459	)		48,410,385			(1,006,230	)		47,404,155			10,107,357			3,176,705

	Common Stock
	Class A						Class T				Class W				Class Y				Class Z
	Number of Shares			Common Stock Par Value			Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Additional Paid-in Capital			Distributions			Accumulated Deficit			Total Strategic Student & Senior Housing Trust, Inc. Equity			Noncontrolling Interests in our Operating Partnership			Total Equity			Preferred Equity in our Operating Partnership			Redeemable Common Stock
Balance as of March 31, 2019		11,339,061			11,339			52,019		52		67,052		67		—		—		—		—		85,111,705			(9,708,319	)		(27,004,459	)		48,410,385			(1,006,230	)		47,404,155			10,107,357			3,176,705
Gross proceeds from issuance of common stock		76,163			76			18,100		18		16,277		16		—		—		—		—		1,120,651			—			—			1,120,761			—			1,120,761			—			—
Offering costs		—			—			—		—		—		—		—		—		—		—		(533,854	)		—			—			(533,854	)		—			(533,854	)		—			—
Reimbursement of offering costs by Advisor		—			—			—		—		—		—		—		—		—		—		1,530			—			—			1,530			—			1,530			—			—
Changes to redeemable common stock		—			—			—		—		—		—		—		—		—		—		(588,006	)		—			—			(588,006	)		—			(588,006	)		—			588,006
Redemptions of common stock		(8,646	)		(9	)		—		—		—		—		—		—		—		—		—			—			—			(9	)		—			(9	)		—			(115,028	)
Distributions		—			—			—		—		—		—		—		—		—		—		—			(1,779,287	)		—			(1,779,287	)		—			(1,779,287	)		—			—
Distributions to noncontrolling interests		—			—			—		—		—		—		—		—		—		—		—			—			—			—			(5,164	)		(5,164	)		—			—
Distributions to preferred unitholders in our Operating Partnership		—			—			—		—		—		—		—		—		—		—		—			—			—			—			—			—			(243,810	)		—
Issuance of shares for distribution reinvestment plan		59,296			60			393		1		275		—		—		—		—		—		587,945			—			—			588,006			—			588,006			—			—
Issuance of restricted stock		2,500			3			—		—		—		—		—		—		—		—		—			—			—			3			—			3			—			—
Stock based compensation expense		—			—			—		—		—		—		—		—		—		—		5,374			—			—			5,374			—			5,374			—			—
Net loss attributable to Strategic Student & Senior Housing Trust, Inc.		—			—			—		—		—		—		—		—		—		—		—			—			(4,644,175	)		(4,644,175	)		—			(4,644,175	)		243,810			—
Net loss attributable to the noncontrolling interests		—			—			—		—		—		—		—		—		—		—		—			—			—			—			(10,336	)		(10,336	)		—			—
Accretion of non-cash preferred equity issuance costs		—			—			—		—		—		—		—		—		—		—		—			—			—			—			—			—			11,648			—
Balance as of June 30, 2019		11,468,374			11,469			70,512		71		83,604		83		—		—		—		—		85,705,345			(11,487,606	)		(31,648,634	)		42,580,728			(1,021,730	)		41,558,998			10,119,005			3,649,683

	Common Stock
	Class A						Class T				Class W				Class Y				Class Z
	Number of Shares			Common Stock Par Value			Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Number of Shares		Common Stock Par Value		Additional Paid-in Capital			Distributions			Accumulated Deficit			Total Strategic Student & Senior Housing Trust, Inc. Equity			Noncontrolling Interests in our Operating Partnership			Total Equity			Preferred Equity in our Operating Partnership			Redeemable Common Stock
Balance as of June 30, 2019		11,468,374			11,469			70,512		71		83,604		83		—		—		—		—		85,705,345			(11,487,606	)		(31,648,634	)		42,580,728			(1,021,730	)		41,558,998			10,119,005			3,649,683
Gross proceeds from issuance of common stock		—			—			—		—		—		—		261,333		261		143,710		144		3,766,495			—			—			3,766,900			—			3,766,900			—			—
Offering costs		—			—			—		—		—		—		—		—		—		—		(645,244	)		—			—			(645,244	)		—			(645,244	)		—			—
Reimbursement of offering costs by Advisor		—			—			—		—		—		—		—		—		—		—		183,493			—			—			183,493			—			183,493			—			—
Changes to redeemable common stock		—			—			—		—		—		—		—		—		—		—		(595,568	)		—			—			(595,568	)		—			(595,568	)		—			595,568
Redemptions of common stock		(14,798	)		(15	)		—		—		—		—		—		—		—		—		—			—			—			(15	)		—			(15	)		—			(94,293	)
Distributions		—			—			—		—		—		—		—		—		—		—		—			(1,832,990	)		—			(1,832,990	)		—			(1,832,990	)		—			—
Distribution of common stock		—			—			5,307		5		909		1	��	—		—		—		—		(6	)		—			—			—			—			—			—			—
Distributions to noncontrolling interests		—			—			—		—		—		—		—		—		—		—		—			—			—			—			(3,993	)		(3,993	)		—			—
Distributions to preferred unitholders in our Operating Partnership		—			—			—		—		—		—		—		—		—		—		—			—			—			—			—			—			(251,730	)		—
Issuance of shares for distribution reinvestment plan		63,033			63			574		—		341		1		89		—		3		—		595,504			—			—			595,568			—			595,568			—			—
Stock based compensation expense		—			—			—		—		—		—		—		—		—		—		5,230			—			—			5,230			—			5,230			—			—
Net loss attributable to Strategic Student & Senior Housing Trust, Inc.		—			—			—		—		—		—		—		—		—		—		—			—			(5,446,249	)		(5,446,249	)		—			(5,446,249	)		251,730
Net loss attributable to the noncontrolling interests		—			—			—		—		—		—		—		—		—		—		—			—			—			—			(12,195	)		(12,195	)		—			—
Accretion of non-cash preferred equity issuance costs		—			—			—		—		—		—		—		—		—		—		—			—			—			—			—			—			11,649			—
Balance as of September 30, 2019		11,516,609		$	11,517			76,393	$	76		84,854	$	85		261,422	$	261		143,713	$	144	$	89,015,249		$	(13,320,596	)	$	(37,094,883	)	$	38,611,853		$	(1,037,918	)	$	37,573,935		$	10,130,654		$	4,150,958

	Nine Months Ended September 30,
	2019			2018
Cash flows from operating activities:
Net loss	$	(14,094,527	)	$	(11,260,662	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		11,505,709			10,245,789
Amortization of debt issuance costs		591,310			540,404
Stock based compensation expense related to issuance of restricted stock		15,010			—
Increase (decrease) in cash, cash equivalents, and restricted cash from changes in assets and liabilities:
Other assets		(150,001	)		(823,490	)
Accounts payable and accrued liabilities		1,882,431			2,758,122
Due to affiliates		2,921,658			534,658
Net cash provided by operating activities		2,671,590			1,994,821
Cash flows from investing activities:
Purchase of real estate facilities		—			(170,123,441	)
Additions to real estate facilities		(1,323,146	)		(303,285	)
Additions to construction in process		(8,061,552	)		—
Investment in company owned life insurance		(420,243	)		—
Settlement of company owned life insurance		420,243			—
Net cash used in investing activities		(9,384,698	)		(170,426,726	)
Cash flows from financing activities:
Proceeds from issuance of non-revolving mortgage debt		—			110,105,000
Proceeds from issuance of KeyBank Bridge Loans		7,349,284			51,500,000
Principal payments of KeyBank Bridge Loans		(2,598,245	)		(10,148,136	)
Debt issuance costs		(223,018	)		(2,349,937	)
Issuance of preferred equity in our Operating Partnership		—			6,301,116
Gross proceeds from issuance of common stock		6,817,149			16,798,588
Redemptions of common stock		(178,960	)		(1,535,689	)
Offering costs		(530,060	)		(369,831	)
Distributions paid to common stockholders		(3,570,827	)		(2,989,432	)
Distributions paid to Operating Partnership unitholders		(11,847	)		(9,337	)
Net cash provided by financing activities		7,053,476			167,302,342
Net change in cash, cash equivalents, and restricted cash		340,368			(1,129,563	)
Cash, cash equivalents, and restricted cash, beginning of period		11,272,611			10,371,998
Cash, cash equivalents, and restricted cash, end of period	$	11,612,979		$	9,242,435
Supplemental disclosures and non-cash transactions:
Cash paid for interest	$	7,670,411		$	3,898,287
Interest capitalized	$	280,679		$	—
Additions to debt issuance costs included in accounts payable and accrued liabilities	$	—		$	16,095
Deposits applied to purchase of real estate	$	—		$	1,000,000
Acquisition costs included in due to affiliates	$	—		$	1,980,000
Additions to real estate and construction in process in accounts payable and accrued liabilities	$	1,370,493		$	—
Proceeds from issuance of common stock previously in accounts payable and accrued liabilities	$	48,900		$	—
Offering costs included in accounts payable and accrued liabilities or due to affiliates	$	992,905		$	588,161
Non-cash preferred equity issuance in our Operating Partnership	$	—		$	63,011
Distributions payable	$	1,341,889		$	653,431
Redemptions of common stock included in accounts payable and accrued liabilities	$	94,284		$	—
Issuance of shares pursuant to distribution reinvestment plan	$	1,749,225		$	1,783,686
Public offering costs previously included in other assets	$	—		$	722,840

Strategic Student & Senior Housing Trust, Inc., a Maryland corporation, ~~(the “Company”),~~ was formed on October 4, 2016 under the Maryland General Corporation Law for the purpose of engaging in the business of investing in student housing and senior housing real estate investments. The Company’s year-end is December 31. As used in these consolidated financial statements, “we,” “us,” “our,” and ~~“our”~~“Company” refer to Strategic Student & Senior Housing Trust, Inc. and each of our subsidiaries.

On October 4, 2016, our Advisor, as defined below, acquired 111.11 shares of our common stock for $1,000 and became our initial stockholder. On January 27, 2017, pursuant to a confidential private placement memorandum (the ~~“private placement memorandum”~~“Private Placement Memorandum”), we commenced a private offering of up to $100,000,000 in shares of our common stock (the “Primary Private Offering”) and 1,000,000 shares of common stock pursuant to our distribution reinvestment plan (collectively, the “Private Offering” and together with the Public Offering, the “Offerings”). The Private Offering required a minimum offering amount of $1,000,000. On August 4, 2017, we met such minimum offering requirement. Our Private Offering terminated on March 15, 2018. We raised offering proceeds of approximately $93 million from the issuance of approximately 10.8 million shares pursuant to the Private Offering.

On May 1, 2018, our registration statement on Form S-11 (File No. 333-220646) (the “Registration Statement”) was declared effective by the Securities and Exchange Commission (“SEC”). The Registration Statement registered up to $1.0 billion in shares of common stock for sale to the public (the “Primary Offering”) consisting of three classes of shares — Class A shares, ~~for $10.33 per share (up to $450 million in shares),~~ Class T shares, ~~for $10.00 per share (up to $450 million in shares),~~ and Class W ~~shares for $9.40 per share (up to $100 million in shares) —~~shares— and up to $95,000,000 in shares of common stock for sale pursuant to our distribution reinvestment plan (together with the Primary Offering, the “Public Offering”) ~~at $9.81 per share for Class A shares, $9.50 per share for Class T shares and $9.40 per share for Class W shares.~~

.Concurrently with our Registration Statement being declared effective, we filed articles of amendment to our ~~Charter (the “Articles of Amendment”)~~charter and articles supplementary to our ~~Charter (the “Articles Supplementary”).~~charter. As a result, ~~of filing the Articles of Amendment and the Articles Supplementary,~~ all shares issued in our Private Offering were redesignated as Class A shares and the ~~remaining~~authorized shares were reclassified ~~such that we now have 315,000,000 shares classified as~~among Class A shares ~~315,000,000~~and two new classes of shares, ~~classified as~~ Class T shares and ~~70,000,000 shares classified as~~ Class W shares.

On June 21, 2019, we suspended the sale of Class A shares, Class T shares, and Class W shares in the Primary Offering and filed a post-effective amendment to our Registration Statement to register two new classes of shares (Class Y common stock and Class Z common stock) with the SEC. On July 10, 2019, the amendment to our Registration Statement was declared effective by the SEC. Also on July 10, 2019, we filed articles supplementary to our charter which reclassified certain authorized and unissued shares of our common stock into Class Y shares and Class Z shares. Effective as of July 10, 2019, we began offering Class Y shares (up to $700 million in shares) and Class Z shares (up to $300 million in shares) in our Primary Offering at a price of $9.30 per share and are offering Class A shares, Class T shares, Class W shares, Class Y shares, and Class Z shares pursuant to our distribution reinvestment plan at a price of $9.30 per share. The Class Y shares and Class Z shares have similar voting rights and rights upon liquidation to the Class A shares, Class T shares, and Class W shares, although distributions are expected to differ because of the stockholder servicing fee associated with the Class Y shares and the dealer manager servicing fee associated with the Class Z shares. As of September 30, ~~2018,~~2019, we had sold approximately ~~51,000~~362,000 Class A shares, noapproximately 70,000 Class T shares, approximately 83,000 Class W shares, approximately 261,000 Class Y shares, and approximately ~~27,000~~144,000 Class WZ shares for gross offering proceeds of approximately ~~$750,000~~$8.9 million in our ~~Public~~Primary Offering.

While the Company was formed on October 4, 2016, no formal operations commenced until our acquisition of a property in Fayetteville, Arkansas (the “Fayetteville Property”) on June 28, 2017 and, therefore, there were no revenues or expenses prior thereto. We intend to invest the net proceeds from our Primary Offering primarily in income-producing student housing and senior housing properties and related real estate investments located in the United States. We may also purchase growth-oriented student housing and senior housing real estate assets. As of September 30, ~~2018,~~2019, we owned (i) ~~two~~2 student housing properties, (ii) ~~four~~4 senior housing properties, ~~and~~ (iii) an approximately 2.6% beneficial interest in Reno Student Housing, DST, a Delaware Statutory Trust (DST) that owns ~~another~~a student housing ~~property.~~property (“Reno Student Housing”), and (iv) an approximately 1.4% beneficial interest in Power 5 Conference Student Housing I, DST, a DST that owns 2 student housing properties (“Power 5 Conference Student Housing”).

Our operating partnership, SSSHT Operating Partnership, L.P., a Delaware limited partnership (our “Operating Partnership”), was formed on October 5, 2016. On October 5, 2016, our Advisor agreed to acquire a limited partnership interest in our Operating Partnership for $1,000 (111.11 partnership units) and we agreed to contribute the initial $1,000 capital contribution to our Operating Partnership in exchange for the general partner interest. In addition, on September 28, 2017, our Advisor acquired additional limited partnership interests (25,447.57 partnership units) in our Operating Partnership for $199,000, resulting in total capital contributions of $200,000 by our Advisor in our Operating Partnership. Our Operating Partnership owns, directly or indirectly through one or more special purpose entities, all of the student housing and senior housing properties that we acquire. As of September 30, ~~2018,~~2019, we owned approximately 99.8% of the common units of limited partnership interest of our Operating Partnership. The remaining approximately 0.2% of the common units are ~~owed~~owned by our Advisor. We will conduct certain activities directly or indirectly through our taxable REIT subsidiary, SSSHT TRS, Inc., a Delaware corporation (the “TRS”) which was formed on October 6, 2016, and is a wholly owned subsidiary of our Operating Partnership. See ~~also~~ Note 65 – Preferred Equity in our Operating Partnership.

SmartStop Asset Management, LLC, a Delaware limited liability company organized in 2013 (our “Sponsor”), is the sponsor of our Public ~~Offering of shares of our common stock.~~Offering. Our Sponsor is a company primarily focused on providing real estate advisory, asset management, and property management services. In June 2019, our Sponsor entered into a series of transactions with SmartStop Self Storage REIT, Inc. (f/k/a Strategic Storage Trust II, Inc.) (“SmartStop REIT”) in which SmartStop REIT acquired the self storage advisory, asset management, property management and tenant insurance businesses of our Sponsor. As a result of the transactions, our Sponsor and its subsidiaries own limited partnership units in the operating partnership of SmartStop REIT, and our Sponsor is now focused primarily on student and senior housing. As of September 30, ~~2018,~~2019, our Sponsor owns 97.5% of the economic interests (and 100% of the voting membership interests) of our Advisor and owns 100% of our Property Manager, each as defined below.

We have no0 employees. Our advisor is SSSHT Advisor, LLC, a Delaware limited liability company (our “Advisor”) which was formed on October 3, 2016. The majority of the officers of our Advisor are also officers of us and our Sponsor. Our Advisor is responsible for managing our affairs on a day-to-day basis and identifying and making acquisitions and investments on our behalf under the terms of ~~an advisory agreement we entered into with our Advisor on January 27, 2017 (our “Private Offering~~the Advisory Agreement”) which, in connection with our Public Offering, we amended and restated on May 1, 2018 and further amended on September 6, 2018 (as amended, our “Advisory Agreement”). The majority of the officers of our Advisor are also officers of us and our Sponsor.Agreement, as defined elsewhere herein. Please see Note 7 – Related Party Transactions for additional detail.

SSSHT Property Management, LLC, a Delaware limited liability company (our “Property Manager”), was formed on October 3, 2016. Our Property Manager derives substantially all of its income from the property management oversight services it performs for us. We expect that we will enter into property management agreements directly with third party property managers and that our Property Manager will provide oversight services with respect to such third party property managers. Please see Note 87 – Related Party Transactions for additional detail.

The Fayetteville Property and our property in Tallahassee, Florida (the “Tallahassee Property”) are managed by ~~Asset Campus Housing (“ACH”),~~ a third-party student housing property manager. ~~Three of our~~Our senior housing properties are managed by ~~MSL Community Management LLC, an affiliate of MBK Senior Living LLC (“MBK”). Our fourth~~third-party senior ~~housing property is managed by Integral Senior Living, LLC (“ISL”).~~living operators. Please see Note 98 – Commitments and Contingencies for additional detail.

Our dealer manager is Select Capital Corporation, a California corporation (our “Dealer Manager”). On January 27, 2017, we executed a dealer manager agreement (as amended, the “Private Offering Dealer Manager Agreement”) with our Dealer Manager with respect to the Private Offering. The Private Offering Dealer Manager Agreement terminated at the closing of our Private Offering. We executed a similar dealer manager agreement (the “Dealer Manager Agreement”) with our Dealer Manager with respect to the Public Offering on May 1, 2018. Our Dealer Manager was responsible for marketing our shares offered pursuant to our Primary Private Offering and is now similarly responsible for our Primary Offering. Our Sponsor owns, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer Manager. Affiliates of our Dealer Manager own a 2.5% non-voting membership interest in our Advisor, which they acquired on January 1, 2018.

Our Dealer Manager is responsible for marketing our shares offered pursuant to our offerings. Please see Note 7 – Related Party Transactions for additional detail.

Our Sponsor owns 100% of the membership interests of Strategic Transfer Agent Services, LLC, our transfer agent (our “Transfer Agent”). ~~On May 1, 2018, the Company executed a transfer agent agreement (the “Transfer Agent Agreement”), with our Transfer Agent.~~ Our Transfer Agent provides transfer agent and registrar services to us that are substantially similar to what a third party transfer agent would provide in the ordinary course of performing its functions as a transfer agent. ~~Our Transfer Agent may retain and supervise third party vendors in its efforts to administer certain services.~~Please see Note 7 – Related Party Transactions for additional detail. Prior to May 1, 2018, our Advisor ~~processed subscription agreements and~~ provided ~~other stockholder and investor relations~~ services on our ~~behalf.~~behalf similar to those provided by our Transfer Agent.

As we accept subscriptions for shares of our common stock, ~~in our Offerings,~~ we transfer all of the net offering proceeds to our Operating Partnership as capital contributions in exchange for additional limited partnership units ~~of interest~~ in our Operating Partnership. However, we will be deemed to have made capital contributions in the amount of gross proceeds received from investors, and our Operating Partnership will be deemed to have simultaneously paid the sales commissions and other costs associated with the Offering. In addition, our Operating Partnership is structured to make distributions with respect to limited

partnership units that are equivalent to the distributions we make to stockholders. Finally, a limited partner in our Operating Partnership may later exchange his or her limited partnership units in our Operating Partnership for shares of our common stock at any time after one year following the date of issuance of their limited partnership units, subject to certain restrictions outlined in the ~~limited partnership agreement of our~~ Operating Partnership ~~which was amended in connection with the Public Offering (the “Operating Partnership Agreement”).~~Agreement. Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as it is acting as our Advisor pursuant to our Advisory Agreement.

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC.

Certain amounts previously reported in our 2018 financial statements have been reclassified to conform to the fiscal 2019 presentation.

Our financial statements, and the financial statements of our Operating Partnership, including its wholly-owned subsidiaries, are consolidated in the accompanying consolidated financial statements. The portion of these consolidated entities not wholly-owned by us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated in consolidation.

Current accounting guidance provides a framework for identifying a variable interest entity (“VIE”) and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of a VIE in its consolidated financial statements. In general, a VIE is an entity or other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. Generally, a VIE should be consolidated if a party with an ownership, contractual, or other financial interest in the VIE (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities, and noncontrolling interest at fair value and subsequently account for the VIE as if it were consolidated based on majority voting interest. Our Operating Partnership is deemed to be a VIE and is consolidated by the Company as the primary beneficiary.

As of September 30, ~~2018,~~2019, we had not entered into other contracts/interests that would be deemed to be variable interests in a VIE other than ~~one investment~~two investments of an approximately 2.6% and 1.4% of beneficial ~~interest~~interests in ~~a DST~~two DSTs that ~~owns another~~own student housing ~~property,~~properties, which isare accounted for under the equity method of accounting. Please see Note 87 – Related Party Transactions for additional detail. Other than the aforementioned equity method ~~investment,~~investments, we do not currently have any relationships with unconsolidated entities or financial partnerships.

We account for the noncontrolling interest in our Operating Partnership in accordance with the related accounting guidance. Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partners, our Operating Partnership, including its wholly-owned subsidiaries, are consolidated by the Company and the limited partner interest is reflected as a noncontrolling interest in the accompanying consolidated balance sheets. The noncontrolling interest shall be attributed its share of income and losses, even if that attribution results in a deficit noncontrolling interest balance.

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. Management will adjust such estimates when facts and circumstances dictate. Actual results could materially differ from those estimates. The most significant estimates made include the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at relative fair value, the determination if certain entities should be consolidated, the evaluation of potential impairment of long-lived assets, and the estimated useful lives of real estate assets and intangibles.

We consider all short-term, highly liquid investments that are readily convertible to cash with a maturity of three months or less at the time of purchase to be cash equivalents.

We may maintain cash and cash equivalents in financial institutions in excess of insured limits, but believe this risk will be mitigated by only investing in or through high quality financial institutions.

Restricted cash consists primarily of impound reserve accounts for property taxes, insurance, and ~~insurance~~construction reserves in connection with the requirements of certain of our loan agreements.

We account for acquisitions in accordance with GAAP, which requires that we allocate the purchase price of a property to the tangible and intangible assets acquired and the liabilities assumed based on their relative fair values. This guidance requires us to make significant estimates and assumptions, including fair value estimates, which requires the use of significant unobservable inputs as of the acquisition date.

The value of the tangible assets, consisting of land and buildings, is determined as if vacant. Substantially all of the leases in place at acquired properties are at market rates, as the majority of the leases are one year or less. We also consider whether in-place, market leases represent an intangible asset. We recorded ~~approximately $16.0 million~~0ne and approximately ~~$6.3~~$16.0 million in intangible assets to recognize the value of in-place leases related to our acquisitions during the nine months ended September 30, ~~2018~~2019 and ~~the year ended December 31, 2017,~~2018, respectively. We do not expect to have intangible assets for the value of tenant ~~relationships.~~relationships because we expect the average tenant turnover will be fairly frequent.

Acquisitions of portfolios of properties are allocated to the individual properties based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size, age, and location of the individual property along with current and projected occupancy and rental rate levels or appraised values,
if available.

In January 2017, the FASB issued Accounting Standards Update 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework provides guidance for determining whether an integrated set of assets and activities is a business and narrows the definition of a business, which is expected to result in fewer transactions being accounted for as business combinations. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business, as defined under current GAAP, are accounted for as asset acquisitions. ~~We adopted this ASU on January 1, 2018. We expect that~~During the nine months ended September 30, 2018, our acquisitions ~~of real estate or in-substance real estate will~~have not ~~meet~~met the ~~revised~~ definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related intangible assets) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. As a result, once an acquisition is deemed probable, transaction costs ~~will now be~~are capitalized rather than expensed.

During the nine months ended September 30, 2018, we acquired ~~four~~4 properties that did not meet the ~~revised~~ definition of a business, and we capitalized approximately $3.4 million of acquisition-related transaction costs ~~that would have otherwise been~~and we expensed ~~under the guidance in effect prior to January 1, 2018.~~

approximately $0.5 million of acquisition-related transaction costs which did not meet our capitalization criteria. During the nine months ended September 30, ~~2018,~~2019, we ~~expensed approximately $0.5 million compared to $2.6 million during the nine months ended September 30, 2017 of~~did 0t incur any acquisition-related transaction costs that did not meet our capitalization criteria. Additionally, during the three months ended September 30, 2018, we expensed approximately $0.1 million compared to $1.2 million during the three months ended September 30, 2017 of acquisition-related transaction costs that did not meet our capitalization criteria.costs.

Management monitors events and changes in circumstances that could indicate that the carrying amounts of our long-lived assets, including any that may be held through joint ventures, may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of the assets may not be recoverable, we will assess the recoverability of the assets by determining whether the carrying value of the long-lived assets will be recovered through the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived assets to the fair value and recognize an impairment loss.

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”) as ASC Topic 606. The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and superseded most of the existing revenue recognition guidance, including industry-specific guidance. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB ASC. We adopted ASU 2014-09 on January 1, 2018 using the modified retrospective approach and its adoption did not have a material impact on our consolidated financial statements.

Our student housing properties are typically leased by the bed with fixed terms on an individual lease basis, often with parental guarantees. Substantially all of our leases coincide with each university’s particular academic year but generally commence in August and terminate in July. We bill residents on a monthly basis, which is generally due at the beginning of the month. Residents have access to their units along with the ~~properties~~property’s respective amenities (i.e. study rooms, exercise facilities, common areas, etc.). The units are generally fully equipped (i.e. kitchen facilities, washer/dryer, etc.). We do not provide any food or other similar services.

Our senior housing properties are generally leased by the unit, pursuant to a resident lease agreement with fixed terms. Such agreements generally have an initial term of no more than 12 months, but are cancellable with 30 days’ notice. Included in the base monthly lease fee are standard items (i.e. living accommodations, food services, activity programs, concierge services, care services, etc.). We bill on a monthly basis, which is generally due at the beginning of the month.

Additionally, at our senior housing properties our managers provide certain ancillary services to residents that are not contemplated in the lease agreement with each resident (primarily ~~care services~~community fees and to a lesser extent guest meals, etc.). These services are provided and paid for in addition to the standard items included in each resident lease. Such items are billed on a monthly basis and are generally due at the beginning of the month.

The majority of our revenues are derived from lease and lease related revenues, and the majority of such revenue is not subject to the revenue recognition guidance ~~in ASU 2014-09, as these~~(“ASC Topic 606”) under GAAP. The revenues derived from our leases are accounted for pursuant to ~~lease~~ASU 2016-02, “Leases (ASC Topic 842).” ASU 2016-02 does not fundamentally change lessor accounting; however, some changes have been made to lessor accounting ~~guidance. Such revenues include:~~

Additionally, the Company has elected to adopt a practical expedient not to separate lease and nonlease components, which can only be applied to leasing arrangements for which (i) the timing and pattern of transfer are the same for the lease and nonlease components and (ii) the lease component, if accounted for separately, would be classified as an operating lease. Under this practical expedient, contracts that are predominantly lease-based would be accounted for under ASU 2016-02, and contracts that are predominantly service-based would be accounted for under ASC Topic 606. Lease and nonlease revenue components that are accounted for within the scope of ASU 2016-02 are:

~~In estimating the collectability~~uncollectibility of our accounts receivable. However, if we determine that a receivable is not probable of being substantially collected, we ~~analyze~~adjust the ~~aging~~amount of ~~resident receivables, historical bad debts,~~leasing and ~~current economic trends.~~related revenues recorded related to such tenant. For the three and nine months ended September 30, 2018 such amounts were recorded in property operating expenses.

Real estate properties are recorded based upon relative fair values as of the date of acquisition. We capitalize costs incurred to renovate and improve ~~properties.~~properties, including interest and property taxes incurred during the construction period. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use. The costs of ordinary repairs and maintenance are charged to operations when incurred.

Our management is required to make subjective assessments as to the useful lives of our depreciable assets. We consider the period of future benefit of the asset to determine the appropriate useful lives.

Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows:

Furniture, fixtures and equipment are depreciated on a straight-line basis over the estimated useful lives generally ranging from 3 to 7 years.

We allocate a portion of our real estate purchase price to in-place ~~leases, as applicable.~~leases. We ~~are amortizing~~amortize in-place lease intangibles on a straight-line basis over the estimated future benefit period. As of September 30, ~~2018~~2019 and December 31, ~~2017,~~2018, the gross ~~amounts~~amount allocated to in-place leases ~~were~~was approximately $22.3 ~~and $6.2~~ million and accumulated amortization of in-place lease intangibles totaled approximately ~~$8.9~~$16.1 million and ~~$2.5~~$10.6 million, respectively.

The total additional estimated future amortization expense of intangible assets recognized as of September 30, ~~2018~~2019 will be approximately ~~$2.2~~$1.8 million, ~~$8.7~~$3.8 million, and ~~$2.5~~$0.6 million for the years ending December 31, ~~2018,~~ 2019, 2020, and ~~2020~~2021, respectively.

The net carrying value of costs incurred in connection with obtaining non-revolving financing are presented on the consolidated balance sheets as a deduction from the related debt and such amounts totaled approximately ~~$2.3~~$1.9 million as of September 30, ~~2018~~2019 and approximately ~~$0.7~~$2.2 million as of December 31, ~~2017.~~2018.

Our Advisor ~~funded our~~may fund organization and offering costs on our ~~behalf prior to the commencement of our formal operations on June 28, 2017 when we acquired the Fayetteville Property.~~behalf. We are ~~now obligated~~required to reimburse our Advisor for such organization and offering costs; provided, however, our Advisor ~~will~~funded, and was not reimbursed for 1.0% of the gross offering proceeds from the sale of Class W shares towards payment of organization and offering expenses, which we recognized as a capital contribution from our Advisor. Additionally, our Advisor has also agreed to fund, and will not be reimbursed for 1.0% of the gross offering proceeds from the sale of Class WY shares and Class Z shares sold in our Public Offering, which we ~~will~~ recognize as a capital contribution from our Advisor. Such organization and offering costs funded by our Advisor were recognized as a liability when we had a present responsibility to reimburse our Advisor upon the commencement of formal operations, which occurred on June 28, 2017.

Our Advisor must reimburse us within 60 days after the end of the month in which the Public Offering terminates to the extent ~~we paid or reimbursed~~ organization and offering ~~costs (excluding sales commissions, dealer manager fees, stockholder servicing fees~~expenses incurred in good faith in connection with the sale of Class Y shares and ~~dealer manager servicing fees) in excess of 3.5%~~Class Z shares exceed the 1.0% estimate being funded by the Advisor. Conversely, we must reimburse our Advisor within 60 days after the end of the ~~gross~~month in which the Public Offering terminates to the extent such organization and offering ~~proceeds from~~expenses are less than the ~~Primary Offering.~~1.0% estimate being funded by the Advisor. If at any point in time we determine that the ~~total~~ organization and offering costs incurred in connection with the sale of Class Y shares and Class Z shares are expected to exceed ~~3.5%~~1.0% of the gross proceeds anticipated to be received from the ~~Primary Offering,~~sale of such shares, we will recognize such excess as a receivable from our Advisor and a corresponding capital contribution from our Advisor. If we determine that the organization and offering costs incurred in connection with the sale of Class Y shares and Class Z shares are expected to be less than 1.0% of the gross proceeds anticipated to be received from the sale of such shares, we will recognize such difference as a payable to our Advisor and a reduction of additional paid-in capital. Offering costs associated with the Primary Offering are recorded as an offset to additional paid-in capital, and organization costs are recorded in general and administrative expenses.

In connection with our Primary ~~Private~~ Offering, our Dealer Manager ~~received a~~may receive an upfront sales commission ~~of up to 6.0% of gross proceeds from sales in the Primary Private Offering~~ and a dealer manager fee ~~equal to up to 3.0% of gross proceeds from sales in~~based upon the ~~Primary Private Offering under the terms of the Private Offering Dealer Manager Agreement; provided, however, for all shares~~share class sold pursuant to our Primary Private Offering through November 15, 2017 (the “Discount Termination Date”), dealer manager fees were reduced to an amount of up to 2.0% of gross proceeds from sales in the Primary Private Offering.

In connection with our Primary Offering, our Dealer Manager receives a sales commission of up to 6.0% of gross proceeds from sales of Class A shares and up to 3.0% of gross proceeds from the sales of Class T shares in the Primary Offering and a dealer manager fee of up to 3.0% of gross proceeds from sales of both Class A shares and Class T shares in the Primary Offering under the terms of the Dealer Manager ~~Agreement.~~Agreement, which are recorded as a reduction to additional paid-in capital as an offering cost. Our ~~Dealer Manager does not receive an~~Advisor agreed to fund the payment of the upfront 3.0% sales commission orand the upfront 3.0% dealer manager fee ~~from sales~~for the sale of Class W shares in the Primary Offering. In addition, our Dealer Manager receives an ongoing stockholder servicing fee that is payable monthly and accrues daily in an amount equal to 1/365th of 1% of the purchase price per share of the Class TY shares sold in the Primary ~~Offering.~~Offering, which we recognize as a capital contribution from our Advisor. Our Dealer Manager also receives an ongoing dealer manager servicing fee that is payable monthly and accrues daily in an amount equal to 1/365th of 0.5% of the purchase price per share of the Class W shares sold in the Primary Offering. We willAdvisor may cease paying ~~the stockholder servicing fee with respect to the Class T shares sold~~such amounts in ~~our Primary Offering at the earlier of (i) the date~~its sole discretion after we list our shares on a national securities exchange, merge or consolidate with or into another entity, or sell or dispose of all or substantially all of our assets, (ii) the date at which the aggregate underwriting compensation from all sources equals 10% of thehave raised $250 million in gross offering proceeds from the sale of Class AY shares ~~Class T shares and Class W shares in our~~pursuant to the Primary Offering, ~~(excluding proceeds from sales pursuant to our Distribution Reinvestment Plan,~~ as ~~defined below), which calculation shall be made by us with the assistance of~~described in more detail in Note 7 – Related Party Transactions.

In addition, our Dealer Manager ~~commencing after the termination~~may also receive an ongoing stockholder servicing fee and ongoing dealer manager fee for certain classes of our ~~Primary Offering, (iii) with respect~~common stock, subject to ~~a particular Class T share, the third anniversary of the issuance of the share, and (iv) the date that such Class T share is redeemed or is no longer outstanding.~~certain limitations. We will cease paying the dealer manager servicing fee with respect to the Class W shares sold in our Primary Offering at the earlier of (i) the date we list our shares on a national securities exchange, merge or consolidate with or into another entity, or sell or dispose of all or substantially all of our assets, (ii) the date at which the aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the sale of Class A shares, Class T shares and Class W shares in our Primary Offering (i.e., excluding proceeds from sales pursuant to our Distribution Reinvestment Plan, as defined below), which calculation shall be made by us with the assistance of our Dealer Manager commencing after the termination of our Primary Offering, (iii) the end of the month in which the aggregate dealer manager servicing fees paid in our Primary Offering with respect to Class W shares equals 9.0% of the gross proceeds from the sale of Class W shares in our Primary Offering (excluding proceeds from sales pursuant to our Distribution Reinvestment Plan, as defined below), which calculation shall be made by us with the assistance of our Dealer Manager commencing after the termination of our Primary Offering, and (iv) the date that such Class W share is redeemed or is no longer outstanding. We will record a liability within Due to Affiliates ~~for the future estimated stockholder and dealer manager servicing fees~~ and a reduction to additional paid-in capital at the time of sale of the Class T, Class W, Class Y, and Class WZ shares ~~as an offering cost.~~for the future estimated ongoing stockholder and dealer manager servicing fees. Please see Note 7 – Related Party Transactions – Dealer Manager Agreements for additional details about such commissions and fees.

In connection with the Private Offering, we adopted a share redemption program (the “Private Offering Share Redemption Program”) that enabled stockholders to sell their shares to us in limited circumstances, and in connection with the Public Offering, we amended the Private Offering Share Redemption Program (the “Share Redemption Program”), each as described in more detail in Note 98 – Commitments and Contingencies – Share Redemption Program.

In general, we record amounts that are redeemable under the Share Redemption Program as redeemable common stock in the accompanying consolidated balance sheets since the shares are redeemable at the option of the holder and therefore their redemption is outside our control. The maximum amount redeemable under the Share Redemption Program will be limited to the number of shares we could repurchase with the amount of the net proceeds from the sale of shares under the Distribution Reinvestment Plan. However, accounting guidance states that determinable amounts that can become redeemable should be presented as redeemable when such amount is known. Therefore, the net proceeds from the Distribution Reinvestment Plan are considered to be temporary equity and are presented as redeemable common stock in our consolidated balance sheets. In addition, current accounting guidance requires, among other things, that financial instruments that represent a mandatory obligation of us to repurchase shares be classified as liabilities and reported at settlement value. Our redeemable common stock is contingently redeemable at the option of the holder. When we determine we have a mandatory obligation to repurchase shares under the Share Redemption Program, we reclassify such obligations from temporary equity to a liability based upon their respective settlement values.

The cost of restricted stock is required to be measured based on the grant date fair value and the cost recognized over the relevant service period.

On June 21, 2019, our board of directors authorized a one-time stock distribution to stockholders holding Class T shares equivalent to approximately 0.07527 shares of Class T common stock per Class T share outstanding as of June 21, 2019. In addition, on June 21, 2019, our board of directors authorized a one-time stock distribution to stockholders holding Class W shares equivalent to approximately 0.01075 shares of Class W common stock per Class W share outstanding as of June 21, 2019. The one-time stock distribution shares were issued on July 10, 2019 and are included in the accompanying consolidated statement of equity at September 30, 2019.

The accounting standard for fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and provides for expanded disclosure about fair value measurements. Fair value is defined by the accounting standard for fair value measurements and disclosures as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels. The following summarizes the three levels of inputs and hierarchy of fair value we use when measuring fair value:

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level that is significant to the fair value measurement in its entirety.

The accounting guidance for fair value measurements and disclosures provides a framework for measuring fair value and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In determining fair value, we will utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment will be necessary to interpret Level 2 and 3 inputs in determining fair value of our financial and non-financial assets and liabilities. Accordingly, there can be no assurance that the fair values we will present will be indicative of amounts that may ultimately be realized upon sale or other disposition of these assets.

Financial and non-financial assets and liabilities measured at fair value on a non-recurring basis in our consolidated financial statements consist of real estate and related liabilities assumed related to our acquisitions. The fair values of these assets and liabilities were determined as of the acquisition dates using widely accepted valuation techniques, including (i) discounted cash flow analysis, which considers, among other things, leasing assumptions, growth rates, discount rates and terminal capitalization rates, (ii) income capitalization approach, which considers prevailing market capitalization rates, and (iii) comparable sales activity. In general, we consider multiple valuation techniques when measuring fair values. However, in certain circumstances, a single valuation technique may be appropriate. All of the fair values of the assets and liabilities as of the acquisition dates were derived using Level 3 inputs.

The carrying amounts of cash and cash equivalents, accounts receivable, other assets, variable-rate debt, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates approximate fair value because of the relatively short-term nature of these instruments.

The table below summarizes our fixed rate debt payable at September 30, ~~2018.~~2019. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate notes payable was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange.

To comply with GAAP, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of derivative contracts for the effect of nonperformance risk, we will consider the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

We made an election to be taxed as a Real Estate Investment Trust (“REIT”), under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with our taxable year ended December 31, 2017. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to currently distribute at least 90% of the REIT’s ordinary taxable income to stockholders. As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders, other than taxable income earned by our ~~TRS, that we distribute to our stockholders.~~TRS. If we fail to qualify as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the IRS grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we are organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for federal income tax purposes.

Even if we continue to qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and federal income and excise taxes on our undistributed income.

We filed an election to treat our TRS as a taxable REIT subsidiary. In general, the TRS performs additional services for our residents and generally engages in any real estate or non-real estate related business. We also utilize our TRS in connection with any structuring of our senior housing properties under the REIT Investment Diversification and Empowerment Act of 2007 (“RIDEA”). Under the RIDEA structure, the senior housing properties that we own are leased by a property owning entity to a subsidiary of our TRS. That TRS subsidiary then directly engages an “eligible independent contractor” to manage and operate the property. Currently, all of our senior housing properties utilize the RIDEA structure.

The TRS is subject to corporate federal and state income tax. The TRS follows accounting guidance which requires the use of the asset and liability method. Deferred income taxes will represent the tax effect of future differences between the book and tax bases of assets and liabilities.

Our real estate portfolio is comprised of ~~two~~2 reportable segments: (i) student housing and (ii) senior housing. Please see Note 76 – Segment Disclosures for additional detail.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which amends the guidance on accounting for leases. ASU 2016-02 supersedes guidance related to accounting for leases and provides for the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. Under ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU 2016-02, lessor accounting is largely unchanged. In July 2018, the FASB issued ASU 2018-11, which provides lessors with a practical expedient, by class of underlying assets, to not separate non-lease components from the related lease components and, instead, to account for those components as a single lease component, if certain criteria are met.We adopted ASU 2016-02 also includes extensive amendments to the disclosure requirements. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted for financial statements that have not yet been made available for issuance. ASU 2016-02 requireson January 1, 2019 using a modified retrospective transition ~~approach for leases existing at, or entered into after,~~which permits application of the ~~beginning of~~new standard on the adoption date as opposed to the earliest comparative period presented in the financial ~~statements, although ASU 2018-11 provides a second adoption methodology which allows recognition as~~statements. In addition, we elected to use the available practical expedient package, and therefore did not reassess classification of ~~the beginning of the year of adoption. While we continue to evaluate the standards, based upon~~ our ~~assessment to date, we do not anticipate the~~existing leases. The adoption of ~~this standard will~~ASU 2016-02 did not have a material impact on our consolidated financial statements. ~~We expect to utilize the practical expedients in ASU 2018-11 as part of our adoption of ASU 2016-02.~~

The following summarizes the activity in the real estate facilities during the nine months ended September 30, ~~2018:~~2019:

~~The following table summarizes the purchase price allocations for our acquisitions during the nine months ended September 30, 2018:~~

We incurred acquisition fees to our Advisor related to the above properties of approximately $3.2 million for the nine months ended September 30, 2018, which were capitalized into the cost basis of our properties.

The table set forth below summarizes, on a pro forma basis, the combined results of operations of the Company for the nine months ended September 30, 2018 and 2017. Such presentation reflects the Company’s acquisitions that occurred during 2018 and 2017, which met the GAAP definition of a business in effect at that time, as if the acquisitions were completed as of January 1, 2017. However, for acquisitions of properties that were not operational as of this date, the pro forma information includes these acquisitions as of the date that formal operations began. As none of the Company’s acquisitions that were completed during the nine months ended September 30, 2018 met the revised definition of a business, no adjustments for these acquisitions have been reflected in the pro forma information below. This pro forma information does not purport to represent what our actual consolidated results of operations would have been for the periods indicated, nor does it purport to predict the results of operations for future periods.

The pro forma consolidated financial information for the nine months ended September 30, 2018 and 2017 were adjusted to exclude none and approximately $2.6 million, respectively, for acquisition related expenses.

⁽¹⁾ ~~Fixed rate debt with interest only payments due monthly and the principal balance due upon maturity.~~

⁽²⁾ Represents the aggregate of three separate mortgage loans for three properties acquired in Utah. Fixed rate debt with interest only payments due monthly for the first two years, then principal and interest on a 30-year amortization schedule thereafter.

⁽³⁾ ~~Fixed rate debt with interest only payments due monthly for the first four years, then principal and interest on a 30-year amortization schedule thereafter.~~

⁽⁴⁾ Variable rate debt with interest only payments due monthly. The variable rate reflected in the table was the rate in effect as of September 30, 2018. The loan may be extended six months from the maturity date upon the payment of a fee equal to 0.50% of the outstanding principal balance of the loan at the time of such extension and certain other terms are met, such as there has not been an event of default.

⁽⁵⁾ Variable rate debt with interest only payments due monthly. The variable rate reflected in the table was the rate in effect as of September 30, 2018. The loan may be extended eight months from the maturity date upon the payment of a fee equal to 0.50% of the outstanding principal balance of the loan at the time of such extension and certain other terms are met, such as there has not been an event of default.

On June 28, 2017, we, through our Operating Partnership and a property-owning special purpose entity (the “JPM Borrower”) wholly-owned by our Operating Partnership, entered into a $29.5 million mortgage loan (the “JPM Mortgage Loan”) with Insurance Strategy Funding IX, LLC (the “JPM Lender”) for the purpose of funding a portion of the purchase price for the Fayetteville Property.

The JPM Mortgage Loan has a term of seven years and requires payments of interest only for such period, with the principal balance due upon maturity (July 1, 2024). The JPM Mortgage Loan bears interest at a fixed rate of 4.20%. The JPM Mortgage Loan may be prepaid at any time, upon 30 days’ written notice, in whole but not in part, subject to payment of a prepayment penalty. If the prepayment occurs during the last 90 days of the term of the loan, no prepayment penalty will
be required.

We and H. Michael Schwartz, our Chief Executive Officer (our “CEO”), serve as non-recourse guarantors pursuant to the terms and conditions of the JPM Mortgage Loan. The non-recourse guaranty of our CEO will expire, upon request, and be of no further force and effect at such time as we have: (1) a net worth (as defined in the agreement) equal to or greater than $40 million; and (2) liquidity (as defined in the agreement) equal to or greater than $3 million. Once the non-recourse guaranty of our CEO expires, the net worth and liquidity standards under the JPM Mortgage Loan will be ongoing for the remainder of the term of the JPM Mortgage Loan.

The JPM Mortgage Loan contains a number of other customary terms and covenants. The JPM Borrower maintains separate books and records and its separate assets and credit (including the Fayetteville Property) are not available to pay our other debts.

On September 28, 2017, we, through a property-owning special purpose entity (the “Nationwide Borrower”) wholly-owned by our Operating Partnership, entered into a $23.5 million loan (the “Nationwide Loan”) with Nationwide Life Insurance Company (“Nationwide”) for the purpose of funding a portion of the purchase price for the Tallahassee Property. The Nationwide Loan is secured by a first mortgage on the Tallahassee Property. The Nationwide Loan matures on October 1, 2024 and requires payments of interest only for such period, with the principal balance due upon maturity.

The Nationwide Loan bears interest at a fixed rate of 3.84%. The Nationwide Loan may be prepaid at any time, upon 30 days’ prior written notice, in whole but not in part, subject to payment of a prepayment penalty. If the prepayment occurs during the last six months of the term of the loan, no prepayment penalty will be required.

We ~~and an entity controlled by our CEO originally served~~serve as non-recourse ~~guarantors~~guarantor pursuant to the terms and conditions of the Nationwide Loan. ~~The non-recourse guaranty of the entity controlled by our CEO expired as of April 2018.~~

The Nationwide Loan contains a number of other customary terms and covenants. The Nationwide Borrower maintains separate books and records and its separate assets and credit (including the Tallahassee Property) are not available to pay our other debts.

On February 23, 2018, we, through ~~three~~3 property-owning special purpose entities wholly-owned by us (the “Freddie Mac Borrowers”), entered into ~~three~~3 separate mortgage loans for an aggregate amount of $46.9 million (the “Freddie Mac Utah Loans”) with KeyBank National Association as a Freddie Mac Multifamily Approved Seller/Servicer (the “Freddie Mac Lender”) for the purpose of funding a portion of the aggregate purchase price for the three ~~properties (the “Salt Lake Properties”)~~properties: Wellington, Cottonwood Creek, and Charleston we acquired.

The Freddie Mac Utah Loans have a term of 10 years, with the first two years being interest only and a 30-year amortization schedule thereafter, and bear interest at a fixed rate of 5.06%. The Freddie Mac Utah Loans are cross-collateralized and cross-defaulted with each other such that a default under one loan would cause a default under the other Freddie Mac Utah Loans.

The loans also contain a number of other customary representations, warranties, borrowing conditions, events of default, affirmative, negative and financial covenants, reserve requirements and other agreements, such as restrictions on our ability to prepay or defease the loans. The Freddie Mac Borrowers maintain separate books and records and their separate assets and credit (including the ~~Salt Lake Properties)~~Wellington, Cottonwood Creek, and Charleston properties) are not available to pay our other debts.

Each Freddie Mac Utah Loan is secured under a multifamily deed of trust, assignment of rents and security agreement from the respective Freddie Mac Borrower in favor of the Freddie Mac Lender, granting a first priority mortgage on the respective property in favor of the Freddie Mac Lender.

We serve as non-recourse guarantors pursuant to the terms and conditions of the Freddie Mac Utah Loans. During the term of the Freddie Mac Utah Loans, we are required to maintain a net worth equal to or greater than $15 million and an initial liquidity requirement equal to or greater than $4.8 million. Once the Utah Bridge Loan (defined below) is paid in full, the liquidity requirement will be reduced to $3 million.

On August 31, 2018, we, through a property-owning special purpose entity (the “Freddie Mac ~~Portland~~Courtyard Borrower”) wholly owned by our Operating Partnership, entered into a mortgage loan of $63.2 million (the “Freddie Mac ~~Portland~~Courtyard Loan”) with KeyBank as a Freddie Mac Lender for the purpose of funding a portion of the purchase price of the senior housing property (the ~~“Portland~~“Courtyard Property”) we acquired.

The Freddie Mac ~~Portland~~Courtyard Loan has a term of 10 years, with the first four years being interest only and a 30-year amortization schedule thereafter, and bears interest at a fixed rate of 4.86%. The Freddie Mac ~~Portland~~Courtyard Loan contains a

number of customary representations, warranties, borrowing conditions, events of default, affirmative, negative and financial covenants, reserve requirements and other agreements, such as restrictions on our ability to prepay or defease the loans.

The Freddie Mac ~~Portland~~Courtyard Borrower maintains separate books and records and its separate assets and credit (including the ~~Portland~~Courtyard Property) is not available to pay our other debts.

The Freddie Mac ~~Portland~~Courtyard Loan is secured under a multifamily deed of trust, assignment of rents and security agreement from the Freddie Mac ~~Portland~~Courtyard Borrower in favor of the Freddie Mac Lender, granting a first priority mortgage in favor of the Freddie Mac Lender.

We serve as non-recourse guarantors pursuant to the terms and conditions of the Freddie Mac ~~Portland~~Courtyard Loan. During the term of the Freddie Mac ~~Portland~~Courtyard Loan, we are required to maintain a net worth equal to or greater than $18.96 million and an initial liquidity requirement equal to or greater than $6.32 million. Once the ~~Portland~~Courtyard Bridge Loans are paid in full and the Memory Care Expansion (each defined further below) is complete, the liquidity requirement will be reduced to $4.8 million. We are able to reduce each of the foregoing liquidity requirements by an additional amount equal to the amount of the 12-month trailing cash flows of all our properties, up to a maximum reduction of $1.5 ~~million~~.million.

Beginning with our acquisition of the Fayetteville Property, we have entered into various loans with KeyBank National Association (“KeyBank”) in order to ~~close on~~fund a portion of the purchase price for our acquisitions. Such loans are in addition to the particular mortgage loan used to acquire the property, and such loans are ~~generally~~ with us, through our Operating Partnership, along with our CEO and an entity controlled by him (the “Initial KeyBank Bridge Borrowers”). As described below, on March 29, 2019, our Sponsor was added as an additional borrower under the Utah Bridge Loan and the Courtyard Bridge Loans (collectively with the Initial KeyBank Bridge Borrowers, the “KeyBank Bridge Borrowers”). See below for a description of the various loans with KeyBank (the “KeyBank Bridge Loans”).

~~Fayetteville Bridge Loan~~

On June 28, 2017, the KeyBank Bridge Borrowers, entered into a bridge loan with KeyBank in an amount of approximately $22.3 million (the “Fayetteville Bridge Loan”) for the purpose of funding a portion of the purchase price for the Fayetteville Property. The Fayetteville Bridge Loan had a variable interest rate, which was based on 1-month Libor plus 400 basis points, resulting in an initial interest rate of approximately 5.23%. On September 5, 2017, we paid off the Fayetteville Bridge Loan with proceeds from our Private Offering.

~~Tallahassee Bridge Loan~~

On September 28, 2017, the KeyBank Bridge Borrowers and KeyBank entered into an amended and restated credit agreement (the “Tallahassee Bridge Loan”) in which the KeyBank Bridge Borrowers borrowed $17.6 million for the purpose of funding a portion of the purchase price for the Tallahassee Property. The Tallahassee Bridge Loan had a variable interest rate, which was based on 1-month Libor plus 400 basis points, resulting in an initial interest rate of approximately 5.24%. On November 15, 2017, we paid off the Tallahassee Bridge Loan with proceeds from our Private Offering.

On February 23, 2018, the Initial KeyBank Bridge Borrowers and KeyBank entered into a second amended and restated credit agreement (the “Utah Bridge Loan”) in which the Initial KeyBank Bridge Borrowers borrowed $24.5 million for the purpose of funding a portion of the aggregate purchase price for the ~~Salt Lake Properties. As of September 30, 2018, this loan had an outstanding balance of approximately $14.4 million.~~Wellington, Cottonwood Creek, and Charleston properties. We have guaranteed full repayment of the Utah Bridge Loan.

The Utah Bridge Loan ~~matures~~was scheduled to mature on February 23, 2019, ~~which may be~~but was extended, based on its terms to August 23, 2019 upon the payment of a fee equal to 0.50% of the outstanding principal balance of the loan at the time of the extension. On March 29, 2019, we amended the Utah Bridge Loan such ~~extension~~that (i) the loan maturity date was further extended to April 30, 2020, (ii) our Sponsor became an additional borrower, (iii) the collateral was amended to include a pledge of equity interests owned by subsidiaries of our Sponsor in certain entities, as set forth in separate pledge agreements and (iii) certain ~~other terms~~of the covenants and restrictions were revised accordingly. The Company expects to be able to satisfy the Utah Bridge Loan through the required payments or to refinance the loan prior to its maturity. In the event the loan is not fully satisfied or refinanced prior to its scheduled maturity, the KeyBank Bridge Borrowers are ~~met, such~~obligated to satisfy the loan, as ~~there has not been an event of default.~~ discussed above.

The Utah Bridge Loan bears interest at a rate of 1-month Libor plus 400 basis points, resulting in an interest rate of approximately ~~6.22%~~6.05% as of September 30, ~~2018. The~~2019. As amended, the Utah Bridge Loan ~~was initially~~is secured by (i) a pledge of certain equity interests held by an entity controlled by our Chief Executive Officer; (ii) a pledge of distributions and other rights with respect to the equity interests in the subsidiaries that have a fee or leasehold interest in the ~~Salt Lake Properties;~~Wellington, Cottonwood Creek, and Charleston properties; (iii) a pledge of the proceeds from the issuance of equity interests in us and our Operating Partnership to the extent constituting collateral, including net proceeds from our ~~Public~~Primary Offering; (iv) a pledge of the bank account in which such equity interest proceeds will be deposited; and (v) a pledge of distributions received by an affiliate of our Sponsor; (vi) additional collateral, as described below under the heading “Courtyard Bridge Loans,” below; and (vii) a pledge of equity interests owned by subsidiaries of our Sponsor in certain entities (the “Utah Collateral”).

our Sponsor (the “Utah Collateral”). In connection with the amendment to the Utah Bridge Loan, the Utah Collateral was amended to add additional collateral, as described below under the heading “Portland Bridge Loans.”The KeyBank Bridge Borrowers are required to apply 100% of the net proceeds from certain capital events, as defined in the Utah Bridge Loan, and we are required to apply the net proceeds from the issuance of equity interests in us, including the net proceeds from our Primary Offering, to the repayment of the Utah Bridge Loan. Unless KeyBank otherwise consents, we are required to defer payment of certain fees that would otherwise be due to our Advisor and Sponsor until the Utah Bridge Loan is no longer outstanding, such as acquisition fees incurred in connection with the acquisition of the ~~Salt Lake Properties.~~Wellington, Cottonwood Creek, and Charleston properties. KeyBank consented to us paying $1.2 million of such fees, and we made such payment ~~as of~~in the quarter ended March 31, 2018. As of September 30, 2019, KeyBank has consented to our retention of approximately $4.0 million of net equity offering proceeds that otherwise would have been required to pay down the Utah Bridge Loan. Additionally, pursuant to the amendment to the Utah Bridge Loan, we are restricted from paying distributions on the Preferred Units or redeeming such Preferred Units until certain requirements on the debt are met. Please see Note 5 – Preferred Equity in our Operating Partnership for detail regarding the Preferred Units. The Utah Bridge Loan imposes certain covenant requirements on us and the other parties, which, if breached, could result in default under the Utah Bridge Loan.

Concurrent with our entry into the Freddie Mac ~~Portland~~Courtyard Loan, the Initial KeyBank Bridge Borrowers and KeyBank entered into a first credit agreement supplement and amendment (the ~~“Portland~~“Courtyard Bridge Loans”) to the Utah Bridge Loan in order to add additional tranches. Accordingly, each of the ~~Portland~~Courtyard Bridge Loans and the Utah Bridge Loan are separate loans with separate maturity dates, but they are secured by the same pool of collateral and subject to the same general restrictions, each as described above under the heading “Utah Bridge Loan” and immediately below.

Pursuant to the terms of the ~~Portland~~Courtyard Bridge Loans, the Utah Bridge Loan was amended to add two additional tranches: (i) an initial loan of $27 million (the ~~“Portland~~“Courtyard Initial Loan”) and (ii) a delayed draw commitment of up to $14 million (the ~~“Portland~~“Courtyard Delayed Draw Commitment”). The KeyBank Bridge Borrowers utilized the ~~Portland~~Courtyard Initial Loan for the purpose of funding a portion of the purchase price for the ~~Portland~~Courtyard Property. ~~We intend to use the Portland~~The Courtyard Delayed Draw Commitment is utilized primarily to fund the costs and expenses associated with the Memory Care Expansion. The ~~Portland~~Courtyard Property contains developable land which is being developed for an additional 23 units of memory care (the “Memory Care Expansion”).

The ~~Portland~~Courtyard Bridge Loanswere scheduled to mature on August 31, 2019, ~~which may be~~but were extended on August 7, 2019 to April 30, 2020 upon the payment of a fee equal to 0.50% of the outstanding principal balance of the ~~Portland Bridge Loans~~loans at the time of ~~such extension and certain other customary terms and conditions are met.~~the extension. The ~~Portland~~Courtyard Bridge Loans, ~~bear the same interest rate as~~similar to the Utah Bridge Loan, ~~which was~~bear interest at a ~~variable~~ rate of 1-month Libor plus 400 basis points which totaled approximately ~~6.25%~~6.05% as of September 30, ~~2018.~~ 2019. The Company expects to be able to satisfy the Courtyard Bridge Loans through the required payments or to refinance the loan prior to its maturity. In the event the loan is not fully satisfied or refinanced prior to its scheduled maturity, the KeyBank Bridge Borrowers are obligated to satisfy the loan, as discussed above.

On October 9, 2018, we received approval from the lender under the Freddie Mac Courtyard Loan to commence construction on the Memory Care Expansion at the Courtyard Property. In connection with this approval: (i) we drew approximately $2.5 million under the Courtyard Delayed Draw Commitment in order to fund certain construction reserves required by our lender and (ii) we executed a guaranty of completion which provides such lender with an absolute, unconditional and irrevocable guaranty by us for the completion of the construction.

With respect to the ~~Portland~~Courtyard Delayed Draw Commitment, we have made approximately $8.5 million of additional draws through September 30, 2019 to fund construction. We are required to pay, on a quarterly basis, an unused commitment fee equal to 0.35% per annum of the average daily unused amount of the ~~Portland~~Courtyard Delayed Draw Commitment.~~As of September 30, 2018, we had no outstanding borrowings under the Portland Delayed Draw Commitment.~~

Pursuant to the ~~Portland~~Courtyard Bridge Loans, the security for the Utah Bridge Loan was amended such that both loans are secured by the same pool of collateral, which now includes a pledge of distributions and other rights with respect to the equity interests in the subsidiaries that have a fee or leasehold interest in the ~~Portland~~Courtyard Property. ~~The~~In addition, and as described above under the heading “Utah Bridge Loan,” on March 29, 2019, we executed an amendment such that (i) our Sponsor became an additional borrower, (iii) the collateral was amended such that it is additionally comprised of a pledge of equity interests owned by subsidiaries of our Sponsor in certain entities, as set forth in separate pledge agreements and (iii) certain of the covenants and restrictions were revised accordingly. Upon the repayment of the Utah Bridge Loan, the KeyBank Bridge Borrowers must continue to apply 100% of the net proceeds from certain capital events and we are required to apply the net proceeds from the issuance of equity interests in us, including the net proceeds from our ~~public offering,~~Primary Offering, to the ~~repayment of the Portland~~outstanding KeyBank Bridge Loans. Unless KeyBank otherwise consents, until the ~~Portland~~Courtyard Bridge Loans are repaid, we

are required to defer payment of (i) acquisition fees otherwise payable to our Advisor and Sponsor in connection with the acquisition of the ~~Portland~~Courtyard Property and (ii) in the event of a default, asset management fees otherwise payable to our Advisor ~~and Sponsor~~ with respect to the ~~Portland~~Courtyard Property. The ~~Portland~~Courtyard Bridge Loans impose certain covenant requirements on us and the other parties to the ~~Portland~~Courtyard Bridge Loans, which, if breached, could result in an event of default under the ~~Portland~~Courtyard Bridge Loans. In connection with the foregoing, we also amended the previously executed note with KeyBank in order to evidence the ~~Portland~~Courtyard Bridge Loans, and we also entered into an Omnibus Amendment and Reaffirmation of Loan Documents, as amended on March 29, 2019 (the “Omnibus Amendment”). As a result of the Omnibus Amendment, we continue to serve as a guarantor pursuant to the terms and conditions of the Utah Bridge Loan and the ~~Portland~~Courtyard Bridge Loans.

The following table presents the future principal payment requirements on outstanding secured and unsecured debt as of September 30, ~~2018:~~2019:

On June 28, 2017, we and our Operating Partnership entered into a Series A Cumulative Redeemable Preferred Unit Purchase Agreement (the “Unit Purchase Agreement”) with SAM Preferred Investor, LLC (the “Preferred Investor”), a wholly-owned subsidiary of our Sponsor. Pursuant to the Unit Purchase Agreement, as amended, the Operating Partnership agreed to issue Preferred Units to the Preferred Investor in connection with preferred equity investments by the Preferred Investor of up to $12 million (the “Investment”), which amount may be invested in one or more tranches, such amounts may only be used for (i) the acquisition of any student housing and senior housing property, (ii) repayment of indebtedness and (iii) working capital and general corporate purposes, in exchange for up to 480,000 preferred units of limited partnership interests in our Operating Partnership (“Preferred Units”), each having a liquidation preference of $25.00 per Preferred Unit (the “Liquidation Amount”), plus all accumulated and unpaid distributions.

In addition to the Unit Purchase Agreement, we and our Operating Partnership entered into a Second Amended and Restated Limited Partnership Agreement of the Operating Partnership (the “Second Amended and Restated Limited Partnership Agreement”) and Amendment No. 1 to the Second and Amended and Restated Limited Partnership Agreement (the “Amendment”). The Second Amended and Restated Limited Partnership Agreement authorizes the issuance of additional classes of units of limited partnership interest in the Operating Partnership and sets forth other necessary corresponding changes. All other terms of the Second Amended and Restated Limited Partnership Agreement remained substantially the same.

The holders of Preferred Units ~~receive~~accrue distributions at a rate of 9.0% per annum (the “Pay Rate”), payable monthly and calculated on an actual/360 day basis. Accumulated but unpaid distributions, if any, accrue at the Pay Rate. As of September 30, 2019 and December 31, 2018, the accumulated unpaid distributions included in distributions payable were approximately $1.1 million and $0.3 million, respectively. The preferred units of limited partnership interests in our Operating Partnership rank senior to all classes or series of partnership interests in our Operating Partnership and therefore, any cash we have to pay distributions ~~are~~ otherwise may be used to pay distributions to the holder of such preferred units first.

The Preferred Units are redeemable by our Operating Partnership, in whole or in part, at the option of our Operating Partnership at any time. Pursuant to the amendment of the Utah Bridge Loan on March 29, 2019, we are currently restricted from paying distributions on the Preferred Units or redeeming such Preferred Units until certain requirements of the Utah and Courtyard Bridge Loans are met. The redemption price (“Redemption Price”) for the Preferred Units is equal to the sum of the Liquidation Amount plus all accumulated and unpaid distributions thereon to the date of redemption.

~~On June 28, 2017,~~During the Preferred Investor invested approximately $5.65 million in the first tranche of its Investment in our Operating Partnership, all of which was used to fund a portion of the purchase price for the acquisition of the Fayetteville Property. The Preferred Investor received 226,000 Preferred Units in our Operating Partnership. In addition, pursuant to the terms of the Unit Purchase Agreement, our Operating Partnership issued to the Preferred Investor an additional 2,260 Preferred Units, or 1.0% of the amount of the first tranche of the Investment.

Our Sponsor previously funded approximately $1.01 million in acquisition and loan deposits related to the acquisition of the Tallahassee Property (the “Previously Funded Amounts”). On September 28, 2017, the Previously Funded Amounts were converted into Preferred Units in our Operating Partnership. Accordingly, the Preferred Investor received an additional 40,220 Preferred Units. In addition, pursuant to the terms of the Unit Purchase Agreement, our Operating Partnership issued to the Preferred Investor an additional approximately 402 Preferred Units, or 1% of the Previously
~~Funded Amounts.~~

Onyear ended December ~~5, 2017, we completed the redemption of the Preferred Units then outstanding with net proceeds from our Private Offering.~~

~~Between June and August of~~31, 2018, the Preferred Investor invested approximately ~~$6.3~~$10.1 million in our Operating Partnership, of which approximately $3.4 million was used in the closing of our ~~Portland~~Courtyard Property, ~~and~~ approximately ~~$2.9~~$5.9 million was used to ~~further~~ pay down the Utah Bridge ~~Loan.~~Loan, and approximately $0.8 million was used to make an investment in Power 5 Conference Student Housing (see Note 7 - Related Party Transactions, for additional information). For these investments, the Preferred Investor received approximately ~~252,000~~402,550 Preferred Units in our Operating Partnership. In addition, pursuant to the terms of the Unit Purchase Agreement, our Operating Partnership issued to the Preferred Investor an additional approximately ~~2,520~~4,025 Preferred Units, or 1.0% of the amount of the Investment.

~~In October 2018, the~~The Preferred Investor ~~invested approximately $0.8 million~~has not made any additional investments in ~~our Operating Partnership, which was used to make an investment in Power 5 Conference Student Housing, see Note 8,~~ ~~Related Party Transactions, for additional information. Also in October 2018,~~ the Preferred Investor invested an additional $3.0 million in our Operating Partnership, such amount was used to primarily pay down Utah Bridge Loan. For these investments, the Preferred Investor received approximately 150,550 Preferred Units in our Operating Partnership. In addition, pursuant to the terms of the Unit Purchase Agreement, our Operating Partnership issued to the Preferred Investor an additional approximately 1,505 Preferred Units, or 1.0% of the amount of the Investment.

nine months ended September 30, 2019. As of September 30, 2019 and ~~October~~December 31, 2018, approximately ~~$6.4 million and~~ $10.2 million ~~respectively,~~ of Preferred Units were outstanding.

We operate in ~~two~~2 reportable business segments: (i) student housing and (ii) senior housing.

Management evaluates performance based upon property net operating income (“NOI”). NOI is defined as leasing and related revenues, less property level operating expenses.

25The following table summarizes information for the reportable segments for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,
	Student Housing						Senior Housing						Corporate and Other						Total
	2019			2018			2019			2018			2019			2018			2019			2018
Leasing and leasing related revenues	$	1,689,154		$	1,841,243		$	6,422,282		$	3,557,421		$	—		$	—		$	8,111,436		$	5,398,664
Other revenues	—				—			165,712			592,329		—			—				165,712			592,329
Property operating expenses		(1,215,998	)		(1,218,285	)		(4,328,495	)		(2,691,884	)	—			—				(5,544,493	)		(3,910,169	)
Net operating income		473,156			622,958			2,259,499			1,457,866			—			—			2,732,655			2,080,824
Property operating expenses - affiliates		238,396			201,449			457,407			284,138		—			—				695,803			485,587
General and administrative	—				—		—			—				632,996			490,894			632,996			490,894
Depreciation		835,220			812,347			1,187,625			745,263			4,398			2,369			2,027,243			1,559,979
Intangible amortization expense		—			512,040			1,836,354			1,329,502		—			—				1,836,354			1,841,542
Acquisition expenses – affiliates	—				—			—			57,538		—			—				—			57,538
Other property acquisition expenses	—				—			—			34,602		—			—				—			34,602
Interest expense		535,350			535,350			1,998,667			1,268,722		—			—				2,534,017			1,804,072
Interest expense – debt issuance costs		24,741			17,031			183,201			198,991		—			—				207,942			216,022
Other		(7,949	)		—			298			37,610			1,016			(6,456	)		(6,635	)		31,154
Net loss	$	(1,152,602	)	$	(1,455,259	)	$	(3,404,053	)	$	(2,498,500	)	$	(638,410	)	$	(486,807	)	$	(5,195,065	)	$	(4,440,566	)


	Nine Months Ended September 30,
	Student Housing						Senior Housing						Corporate and Other						Total
	2019			2018			2019			2018			2019			2018			2019			2018
Leasing and leasing related revenues	$	5,748,629		$	6,415,533		$	18,850,734		$	7,319,345		$	—		$	—		$	24,599,363		$	13,734,878
Other revenues	—				—			510,684			1,177,484		—			—				510,684			1,177,484
Property operating expenses		(3,073,608	)		(3,106,101	)		(12,475,375	)		(5,456,860	)	—			—				(15,548,983	)		(8,562,961	)
Net operating income		2,675,021			3,309,432			6,886,043			3,039,969			—			—			9,561,064			6,349,401
Property operating expenses - affiliates		712,757			441,782			1,364,953			424,474		—			—				2,077,710			866,256
General and administrative	—				—		—			—				1,815,542			1,330,307			1,815,542			1,330,307
Depreciation		2,486,624			2,432,839			3,498,855			1,497,267			10,449			4,307			5,995,928			3,934,413
Intangible amortization expense		—			3,743,640			5,509,781			2,567,736		—			—				5,509,781			6,311,376
Acquisition expenses – affiliates		—			—			—			148,736		—			—				—			148,736
Other property acquisition expenses		—			—			—			304,483		—			—				—			304,483
Interest expense		1,606,050			1,606,050			6,057,148			2,504,035		—			—				7,663,198			4,110,085
Interest expense – debt issuance costs		77,732			51,094			513,578			489,310		—			—				591,310			540,404
Other		(9,810	)		—			2,082			64,699			9,850			(696	)		2,122			64,003
Net loss	$	(2,198,332	)	$	(4,965,973	)	$	(10,060,354	)	$	(4,960,771	)	$	(1,835,841	)	$	(1,333,918	)	$	(14,094,527	)	$	(11,260,662	)

~~The following table summarizes information for the reportable segments for the nine months ended September 30, 2018:~~

Student
Housing

Senior
Housing

Corporate
and Other

Total

Leasing and leasing related revenues

$
6,415,533

$
7,319,345

—

$
13,734,878

Other revenues

—

1,177,484

—

1,177,484

Property operating expenses

(3,106,101
)

(5,456,860
)

—

(8,562,961
)
Net operating income

3,309,432

3,039,969

-

6,349,401

Property operating expenses - affiliates

441,782

424,474

—

866,256

General and administrative

—

—

1,330,307

1,330,307

Depreciation

2,432,839

1,497,267

4,307

3,934,413

Intangible amortization expense

3,743,640

2,567,736

—

6,311,376

Acquisition expenses – affiliates

—

148,736

—

148,736

Other property acquisition expenses

—

304,483

—

304,483

Interest expense

1,606,050

2,504,035

—

4,110,085

Interest expense – debt issuance costs

51,094

489,310

—

540,404

Other

—

64,699

(696
)

64,003

Net loss

$
(4,965,973
)

$
(4,960,771
)

$
(1,333,918
)

$
(11,260,662
)

~~Our~~On January 27, 2017, in connection with the Private Offering, we entered into an advisory agreement with our Advisor (the “Private Offering Advisory ~~Agreement~~Agreement”) and a dealer manager agreement with our ~~Private~~Dealer Manager (the “Private Offering Dealer Manager ~~Agreement~~Agreement”) which entitled our Advisor and our Dealer Manager to specified fees upon the provision of certain services with regard to the Private Offering and investment of funds in real estate properties, among other services, as well as reimbursement for organization and offering costs incurred by our Advisor on our behalf and reimbursement of certain costs and expenses incurred by our Advisor in providing services to us. In connection with our Public Offering, we entered into an amended and restated advisory agreement (as amended, the “Advisory Agreement”) and a new dealer manager agreement (as amended, the “Dealer Manager Agreement”).

~~Additionally, the~~The Advisory Agreement, Dealer Manager Agreement, and transfer agent agreement (the “Transfer Agent Agreement”) executed in connection with the Public Offering, entitle our Advisor, our Dealer Manager and our Transfer Agent to specified fees upon the provision of certain services with regard to the Public Offering and investment of funds in real estate properties, among other services, as well as reimbursement for organizational and offering costs incurred by our Advisor on our behalf and reimbursement of certain costs and expenses incurred by our Advisor and our Transfer Agent in providing services to us.

Organization and offering costs of the ~~Private~~Public Offering may be paid by our Advisor on our behalf and will be reimbursed to our ~~Advisor.~~Advisor from the proceeds of our Primary Offering; provided, however, that our Advisor agreed to fund, and will not be reimbursed for, 1.0% of the gross offering proceeds from the sale of Class W shares. Our Advisor has also agreed to fund, and will not be reimbursed for, 1.0% of the gross offering proceeds from the sale of Class Y shares and Class Z shares, provided, however, that our Advisor may cease paying such amounts in its sole discretion, as described in more detail below. Organization and offering costs consist of all expenses (other than sales commissions, ~~and the~~ dealer manager ~~fee)~~fees, stockholder servicing fees, and dealer manager servicing fees) to be paid by us in connection with the ~~Private~~Public Offering, including our legal, accounting, printing, mailing and filing fees ~~charges of our escrow account holder~~ and other accountable organization and offering expenses, including, but not limited to, (i) amounts to reimburse our Advisor for all marketing related costs and expenses such as salaries and direct expenses of employees of our Advisor and its affiliates in connection with registering and marketing our shares; (ii) technology costs associated with the ~~Private~~Public Offering; (iii) our costs of conducting our training and education meetings; (iv) our costs of

attending retail seminars conducted by participating broker-dealers; and (v) payment or reimbursement of bona fide due diligence expenses. We ~~have and will continue to incur~~also incurred similar organization and offering costs in connection with ~~the Public~~our Primary Private Offering. ~~Pursuant to the Advisory Agreement, our~~Our Advisor ~~will be required to~~must reimburse us within 60 days after the end of the month in which the Public Offering terminates to the extent ~~we paid or reimbursed~~ organization and offering ~~costs (excluding sales commissions, dealer manager fees, stockholder servicing fees, and dealer manager servicing fees)~~expenses incurred in excess of 3.5% of the gross offering proceeds from the Primary Offering. Organization and offering costs of the Public Offering may be paid by our Advisor on our behalf and will be reimbursed to our Advisor from the proceeds of our Primary Offering; provided, however, that our Advisor will fund, and will not be reimbursed for, 1.0% of the gross offering proceeds fromgood faith in connection with the sale of Class ~~W shares.~~Y shares and Class Z shares exceed the 1.0% estimate being funded by the Advisor. Conversely, we must reimburse our Advisor within 60 days after the end of the month in which the Public Offering terminates to the extent such organization and offering expenses are less than the 1.0% estimate being funded by the Advisor.

We do not have any employees. Our Advisor is primarily responsible for managing our business affairs and carrying out the directives of our board of directors. Our Advisor receives various fees and expenses under the terms of our Advisory Agreement. As discussed above, we are required to reimburse our Advisor for certain organization and offering costs from the Offerings; provided, however, pursuant to the Advisory Agreement, our Advisor ~~will fund,~~funded, and ~~will~~was not be reimbursed for, 1.0% of the gross offering proceeds from the sale of Class W shares in the Primary Offering, and additionally has also agreed to fund, and will not be ~~required to reimburse us within 60 days after the end of the month in which the Public Offering terminates to the extent we paid or~~ reimbursed ~~organization and offering costs (excluding sales commissions, dealer manager fees, stockholder servicing fees, and dealer manager servicing fees) in excess of 3.5%~~for, 1.0% of the gross offering proceeds from the ~~Primary Offering.~~sale of Class Y shares and Class Z

shares, provided, however, that our Advisor may cease paying such amounts in its sole discretion, as described in more detail below.

The Advisory Agreement also requires our Advisor to reimburse us to the extent that offering expenses, including sales commissions, dealer manager fees, stockholder servicing fees and dealer manager servicing fees, are in excess of 15% of gross proceeds from the Primary Offering.

Our Advisor was due acquisition fees pursuant to the Private Offering Advisory Agreement equal to 2% of the contract purchase price of each property we acquired while such agreement was in effect. Prior to the amendment of the Advisory Agreement on September 6, 2018 (the “AA Amendment”), our Advisor received acquisition fees equal to 1.75% of the contract purchase price of each property we acquired. ~~However, as~~The AA Amendment eliminated such acquisition fees. On July 10, 2019, we entered into another amendment to the Advisory Agreement (the “Second AA Amendment”). Pursuant to the Second AA Amendment, our Advisor may be entitled to an acquisition fee (the “Contingent Acquisition Fee”) with respect to acquisitions made subsequent to July 10, 2019, subject to us satisfying certain stockholder return thresholds or if the Advisory Agreement is terminated for any reason other than our Advisor’s fraud, willful misconduct or gross negligence before July 10, 2029. After we pay stockholders total distributions equal to their invested capital, plus a ~~result~~6% cumulative, non-compounded annual return on invested capital, we will pay our Advisor a contingent acquisition fee equal to 1% of the Contract Purchase Price (as defined in the Second AA ~~Amendment,~~ Amendment) of each property or other real estate investment we acquire after July 10, 2019; and after we pay stockholders total distributions equal to their invested capital, plus a 13% cumulative, non-compounded annual return on invested capital, we will ~~no longer incur~~pay our Advisor an additional contingent acquisition ~~fees.~~fee equal to 2% of the Contract Purchase Price of each property or other real estate investment we acquire after July 10, 2019. Our Advisor received reimbursement of any acquisition expenses our Advisor incurred pursuant to the Private Offering Advisory Agreement, which continues under the Advisory Agreement.

Our Advisor was entitled to receive a monthly asset management fee equal to 0.05417% (which is one twelfth of 0.65%) of our aggregate asset value, pursuant to the Private Offering Advisory Agreement. Pursuant to the Advisory Agreement, ~~our Advisor,~~ effective May 1, 2018, our Advisor is also entitled to receive a monthly asset management fee. This fee was initially equal to 0.05208% (which is one twelfth of 0.625%) of our average invested assets, as defined by the Advisory Agreement, but the AA Amendment later increased this fee to 0.66667% (which is one twelfth of 0.8%) of our average invested assets.

Pursuant to the Private Offering Advisory Agreement, our Advisor was due a financing fee of up to 0.5% of the borrowed amount of a loan for arranging for financing in connection with the acquisition, development or repositioning of our properties. Our Advisor will not receive financing fees pursuant to the Advisory Agreement.

~~Under our Private Offering Advisory Agreement,~~Pursuant to the Second AA Amendment, our Advisor ~~would have been due~~may be entitled to disposition fees generally equal to 3%the lesser of (a) 1% of the ~~contract sales price~~Contract Sales Price or (b) 50% of each property sold inclusive of any real estate commissions paid to third party real estate brokers. However, no such disposition fees were paid, as we have not sold any properties. Moreover, we will not owe our Advisor any disposition fees going forward, as no such fees will be due under the ~~Advisory Agreement.~~Competitive Real Estate Commission (as defined in the Second AA Amendment).

Our Advisor may also be entitled to various subordinated distributions under our operating partnership agreement if we (1) list our shares of common stock on a national exchange, (2) do not renew or terminate the Advisory Agreement, (3) liquidate our portfolio or (4) effect a merger or other corporate reorganization.

The Private Offering Advisory Agreement and Advisory Agreement provide for reimbursement of our Advisor’s direct and indirect costs of providing administrative and management services to us. Beginning four fiscal quarters after commencement of the Public Offering, pursuant to our Advisory Agreement, our Advisor will be required to pay or reimburse us the amount by which our aggregate annual operating expenses, as defined, exceed the greater of 2% of our average invested assets or 25% of our net income, as defined, unless a majority of our independent directors determine that such excess expenses were justified based on unusual and non-recurring factors. For any fiscal quarter for which total operating expenses for the 12 months then ended exceed the limitation, we will disclose this fact in our next quarterly report or within 60 days of the end of that quarter and send a written disclosure of this fact to our stockholders. In each case the

disclosure will include an explanation of the factors that the independent directors considered in arriving at the conclusion that the excess expenses were justified. Such calculation was effective starting with the quarter ending September 30, 2019 and our aggregate annual operating expenses, as defined, did not exceed the thresholds described above.

Concurrent with the execution of the Second AA Amendment (as described above), we entered into an Advisor Funding Agreement (the “Advisor Funding Agreement”) by and among us, our Operating Partnership, our Advisor and our Sponsor, pursuant to which our Advisor has agreed to fund the payment of the upfront 3% sales commission for the sale of Class Y shares, the upfront 3% dealer manager fee for the sale of Class Y shares, and the estimated 1% organization and offering expenses for the sale of the Class Y shares and Class Z shares in the Primary Offering. Our Advisor’s obligation to fund the upfront sales commissions, upfront dealer manager fees, and organization and offering expenses is expressly limited to us raising $250 million in gross offering proceeds from the sale of Class Y shares pursuant to the Primary Offering. Our Advisor may terminate the Advisor Funding Agreement at any time in its sole discretion after we have raised $250 million in gross offering proceeds from the sale of Class Y shares pursuant to the Primary Offering. At the termination of the Primary Offering, our Advisor will be required to reimburse us if the organization and offering expenses exceed the 1% estimate being funded by our Advisor. Conversely, we must reimburse our Advisor to the extent the organization and offering expenses are less than the 1% estimate being funded by our Advisor. As of September 30, 2019, we have raised approximately $3.8 million in gross offering proceeds from the sale of Class Y and Z shares, and have received funding from our Advisor of approximately $0.2 million for the payment of sales commissions and dealer manager fees for the sale of Class Y shares, and organization and offering expenses for the sale of Class Y and Z shares.

In connection with our Primary Private Offering, our Dealer Manager received a sales commission of up to 6.0% of gross proceeds from sales in the Primary Private Offering and a dealer manager fee equal to up to 3.0% of gross proceeds from sales in the Primary Private Offering under the terms of the Private Offering Dealer Manager Agreement; provided, however, for all shares sold pursuant to our Primary Private Offering through ~~the Discount~~November 15, 2017 (the “Discount Termination ~~Date,~~Date”), dealer manager fees were reduced to an amount of up 2.0% of gross proceeds from sales in the Primary Private Offering.

In connection with our Public Offering, our Dealer Manager ~~receives~~received a sales commission of up to 6.0% of gross proceeds from sales of Class A shares and up to 3%3.0% of gross proceeds from the sales of Class T shares in the Primary Offering and a dealer manager fee of up to 3.0% of gross proceeds from sales of both Class A and Class T shares in the Primary Offering under the terms of the Dealer Manager Agreement. Our Dealer Manager ~~does~~did not receive an upfront sales commission or dealer manager fee from sales of Class W shares in the Primary Offering.

As of June 21, 2019, we ceased offering Class A shares, Class T shares and Class W shares in our Primary Offering, and on July 10, 2019, we commenced offering Class Y shares and Class Z shares. Pursuant to the Dealer Manager Agreement, we now pay our Dealer Manager upfront sales commissions in the amount of 3.0% of the gross proceeds of the Class Y shares sold and dealer manager fees in the amount of 3.0% of the gross proceeds of the Class Y shares sold in the primary portion of the offering.However, as described above, our Advisor has agreed to fund the payment of all upfront sales commissions and dealer manager fees on Class Y shares sold, subject to certain limitations. In addition, our Dealer Manager ~~will receive~~receives an ongoing stockholder servicing fee that is payable monthly and accrues daily in an amount equal to 1/365th of 1% of the purchase price per share of the Class T shares and Class Y shares sold in the Primary Offering. Our Dealer Manager will also receive an ongoing dealer manager servicing fee that is payable monthly and accrues daily in an amount equal to 1/365th of 0.5% of the purchase price per share of the Class W shares and Class Z shares sold in the Primary Offering.

We will cease paying the stockholder servicing fee with respect to the Class T shares and Class Y shares sold in the Primary Offering at the earlier of (i) the date we list our shares on a national securities exchange, merge or consolidate with or into another entity, or sell or dispose of all or substantially all of our assets, (ii) the date at which the aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the sale of Class A shares, Class T shares, Class W shares, Class Y shares, and Class WZ shares in our Primary Offering (i.e., excluding proceeds from sales pursuant to our Distribution Reinvestment Plan), which calculation shall be made by the Company with the assistance of our Dealer Manager commencing after the termination of our Primary Offering; (iii) with respect to a particular Class T share and Class Y share, the third anniversary of the issuance of the share; and (iv) the date that such Class T share or Class Y share is redeemed or is no longer outstanding. We will cease paying the dealer manager servicing fee with respect to the Class W shares and Class Z shares sold in the Primary Offering at the earlier of (i) the date we list our shares on a national securities exchange, merge or consolidate with or into another entity, or sell or dispose of all or substantially all of our assets, (ii) the

date at which the aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the sale of Class A shares, Class T shares, Class W shares, Class Y shares, and Class WZ shares in our Primary Offering (i.e., excluding proceeds from sales pursuant to our Distribution Reinvestment Plan), which calculation shall be made by the Company with the assistance of our Dealer Manager commencing after the termination of our Primary Offering; (iii) the end of the month in which the aggregate dealer manager servicing fees paid in our Primary Offering with respect to Class W shares or Class Z shares equals 9.0% of the gross proceeds from the sale of Class W shares or Class Z shares, respectively, in our Primary Offering (i.e., excluding proceeds from sales pursuant to our Distribution Reinvestment Plan), which calculation shall be made by us with the assistance of our Dealer Manager commencing after the termination of our Primary Offering, and (iv) the date that such Class W share or Class Z share is redeemed or is no longer outstanding.

In connection with our Public Offering, our Dealer Manager will enter into participating dealer agreements with certain other broker-dealers which will authorize them to sell our shares. Upon sale of our shares by such broker-dealers, our Dealer Manager will re-allow all of the sales commissions paid in connection with sales made by these broker-dealers. Our Dealer Manager may also re-allow to these broker-dealers a portion of their dealer manager fee as marketing fees, reimbursement of certain costs and expenses of attending training and education meetings sponsored by our Dealer Manager, payment of attendance fees required for employees of our Dealer Manager or other affiliates to attend retail seminars and public seminars sponsored by these broker-dealers, or to defray other distribution-related expenses. Our Dealer Manager will also receive reimbursement of bona fide due diligence expenses; however, to the extent these due diligence expenses cannot be justified, any excess over actual due diligence expenses will be considered underwriting compensation subject to a 10% FINRA limitation and, when aggregated with all other non-accountable expenses in connection with our Public Offering, may not exceed 3% of gross offering proceeds from sales in the Public Offering.

Our Sponsor owns, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer Manager. Affiliates of our Dealer Manager own a 2.5% non-voting membership interest in our Advisor, which they acquired on January 1, 2018.

Our Sponsor is the owner and manager of our Transfer Agent, which is a registered transfer agent with the SEC. Effective in May 2018, our Transfer Agent processes subscription agreements and certain other forms directly, as well as provides customer service to our stockholders. These services include, among other things, ~~processing payment of any sales commission and dealer manager fees associated with a particular purchase, as well as~~ processing the distributions and any servicing fees with respect to our shares. Additionally, our Transfer Agent may retain and supervise third party vendors in its efforts to administer certain services. We believe that our Transfer Agent, through its knowledge and understanding of the direct participation program industry which includes non-traded REITs, is particularly suited to provide us with ~~Transfer Agent~~transfer agent and registrar services. ~~Our~~We also expect that our Transfer Agent ~~also conducts~~will conduct transfer agent and registrar services for other non-traded REITs sponsored by our Sponsor.

It is the duty of our board of directors to evaluate the performance of our Transfer Agent. In connection with the engagement of our Transfer Agent, we paid a one-time initial setup fee of $50,000. In addition, the other fees to be paid to our Transfer Agent are based on a fixed quarterly fee, one-time account setup fees and monthly open account fees. In addition, we will reimburse our Transfer Agent for all reasonable expenses or other changes incurred by it in connection with the provision of its services to us, and we will pay our Transfer Agent fees for any additional services we may request from time to time, in accordance with its rates then in effect. Upon the request of our Transfer Agent, we may also advance payment for substantial reasonable out-of-pocket expenditures to be incurred by it.

The initial term of the Transfer Agent Agreement is three years, which term will be automatically renewed for one year successive terms, but either party may terminate the Transfer Agent Agreement upon 90 days’ prior written notice. In the event that we terminate the Transfer Agent Agreement, other than for cause, we will pay our Transfer Agent all amounts that would have otherwise accrued during the remaining term of the Transfer Agent Agreement; provided, however, that when calculating the remaining months in the term for such purposes, such term is deemed to be a 12 month period starting from the date of the most recent annual anniversary date.

Pursuant to our Advisory Agreement, our Advisor is responsible for overseeing any third party property managers or operators and may delegate such responsibility to its affiliates. Our Advisor has assigned such oversight responsibilities to our Property Manager. Currently, we expect to rely on third party property managers and senior living operators to manage and operate our properties. Effective May 1, 2018, we now pay our Property Manager an oversight fee equal to 1% of the gross revenues attributable to such properties; provided, however, that our Property Manager will receive an oversight fee equal to 1.5% of the gross revenues attributable to any senior housing property other than such properties that are leased to third party tenants under triple-net or similar lease structures. In the event any of our properties are managed directly by our Property Manager, we will pay our Property Manager a property management fee that is approved by a majority of our board of directors, including a majority of our independent directors not otherwise interested in such transaction, as being fair and reasonable to us and on terms and conditions not less favorable to us than those available from unaffiliated third parties.

Pursuant to the terms of the agreements described above, the following table summarizes related party costs incurred and paid by us for the year ended December 31, ~~2017~~2018 and the nine months ended September 30, ~~2018,~~2019, as well as any related amounts payable as of December 31, ~~2017~~2018 and September 30, ~~2018:~~

	Year Ended December 31, 2017						Nine Months Ended September 30, 2018						Year Ended December 31, 2018						Nine Months Ended September 30, 2019
	Incurred		Paid		Payable		Incurred		Paid		Payable		Incurred		Paid		Payable		Incurred		Paid		Payable
Expensed
Operating expenses (including organizational costs)	$	394,654	$	271,229	$	123,425	$	498,830	$	550,938	$	71,317	$	798,899	$	550,938	$	371,386	$	981,999	$	206,958	$	1,146,427
Transfer Agent expenses		—		—		—		85,194		58,000		27,194		107,473		58,000		49,473		70,749		—		120,222
Asset management fees⁽¹⁾		135,163		93,492		41,671		736,736		262,347		516,060		1,303,198		262,347		1,082,522		1,724,874		—		2,807,396
Property management oversight fees		—		—		—		129,520		44,336		85,184		244,623		44,336		200,287		350,994		—		551,281
Acquisition expenses		2,310,020		2,310,020		—		148,736		148,736		—		154,311		154,311		—		—		—		—
Capitalized
Debt issuance costs		499,382		465,500		33,882		357,025		390,907		—		357,025		390,907		—		—		—		—
Acquisition expenses		—		—		—		3,180,000		1,200,000		1,980,000		3,180,000		1,200,000		1,980,000		—		—		1,980,000
Additional Paid-in Capital
Selling commissions		3,947,269		3,915,109		32,160		839,011		865,171		6,000		894,118		926,278		—		203,301		192,036		11,265
Dealer Manager fees		1,490,524		1,474,704		15,820		477,481		490,301		3,000		511,522		527,342		—		155,296		144,031		11,265
Stockholder servicing fees and dealer manager servicing fees⁽²⁾														47,955		1,009		46,946		235,939		6,717		276,168
Offering costs		508,350		508,350		—		331,637		331,637		—		913,383		406,331		507,052		155,955		-		663,007
Total	$	9,285,362	$	9,038,404	$	246,958	$	6,784,170	$	4,342,373	$	2,688,755	$	8,512,507	$	4,521,799	$	4,237,666	$	3,879,107	$	549,742	$	7,567,031

Please see Note 54 – Debt and Note 65 – Preferred Equity in our Operating Partnership for detail regarding additional related party transactions.

On October 20, 2017, we completed an investment in a private placement offering by Reno Student Housing, DST (“Reno Student Housing”) using proceeds from our Private Offering of approximately $1.03 million for an approximately 2.6% beneficial interest. Reno Student Housing is a Delaware statutory trust and an affiliate of our Sponsor. Reno Student Housing owns a student housing property located in Reno, Nevada (the “Reno Property”). We have determined that Reno Student Housing is a VIE of which we are not the primary beneficiary, as we do not have the power to direct the most significant activities of the entity nor do we have the obligation to absorb losses or the rights to receive benefits of the entity that could be significant to the entity. As such, our investment in Reno Student Housing is accounted for under the equity method of accounting.

In October 2018, we completed an investment of approximately $0.8 million in a private placement offering by Power 5 Conference Student Housing I, DST (“Power 5 Conference Student Housing”) using proceeds from the issuance of Preferred Units in our Operating Partnership for an approximately 1.4% beneficial interest. Power 5 Conference Student Housing is a Delaware statutory trust and an affiliate of our Sponsor. Power 5 Conference Student Housing owns two student housing properties located in Ann Arbor, Michigan and Columbia, South Carolina. We have determined that Power 5 Conference Student Housing is a VIE of which we are not the primary beneficiary, as we do not have the power to direct the most significant activities of the entity nor do we have the obligation to absorb losses or the rights to receive benefits of the entity that could be significant to the entity. As such, our investment in Power 5 Conference Student Housing is accounted for under the equity method of accounting.

The Fayetteville Property and the Tallahassee Property are managed by ~~Asset Campus Housing,~~ a third-party student housing manager. Pursuant to our property management agreements, ~~with ACH,~~ we pay a monthly management fee, plus

reimbursement of amounts reasonably incurred ~~by ACH~~ in managing the properties, such as employee compensation, marketing costs and certain third-party administrative costs. We also pay ~~ACH~~ a construction management fee for certain construction management services. The property management agreements have a one year term and automatically renew for successive one year periods thereafter, unless we or ~~ACH~~the third-party student housing manager provides prior written notice at least 30 days prior to the expiration of the term. The agreements are also subject to other customary termination provisions.

Our senior housing properties are managed by third-party senior living operators. Pursuant to the respective property management agreements we pay a monthly management fee plus reimbursement of amounts reasonably incurred in managing the properties, such as employee compensation, marketing costs and certain third-party administrative costs. In certain instances we may pay a construction management fee for certain construction management services. Additionally, such operators may be entitled to a performance based incentive fee, based on the performance of the property. The property management agreements have an original term of three to five years and automatically renew for successive one year periods thereafter, unless we or the operator provide prior written notice at least 180 days prior to the expiration of the term. The agreements are also subject to customary termination provisions including a termination fee if the agreement is terminated in certain circumstances.

We adopted a distribution reinvestment plan in connection with the Private Offering (the “Private Offering Distribution Reinvestment Plan”) that allowed our stockholders to have distributions otherwise distributable to them invested in additional shares of our common stock. WeOn May 1, 2018, we amended and restated the Private Offering Distribution Reinvestment Plan in connection with the Public Offering ~~(the “Distribution Reinvestment Plan”) on May 1, 2018. The~~to establish the purchase price per share under the distribution reinvestment plan of our Class A, Class T, and Class W shares. On June 21, 2019, our board of directors further amended and restated the distribution reinvestment plan (the “Distribution Reinvestment Plan”), effective as of July 13, 2019, to include, as eligible participants, stockholders holding Class Y shares of our common stock and stockholders holding Class Z shares of our common stock, and to state that the purchase price for shares pursuant to the Distribution Reinvestment Plan shall be $9.30 per share for ~~each class~~all classes of ~~shares is as follows: (i) $9.81 for Class A shares, (ii) $9.50 for Class T shares and (iii) $9.40 for Class W~~ shares. NoNaN sales commissions or dealer manager fees are paid with respect to the sale of such shares. We may amend or terminate the Distribution Reinvestment Plan for any reason at any time upon 10 days’ prior written notice to stockholders.

InWe established a share redemption program in connection with the Private Offering ~~the~~(the “Private Offering Share Redemption Program”) which enabled stockholders to sell their shares to us in limited circumstances. In connection with the Public Offering, we amended the Private Offering Share Redemption Program ~~such~~(as further amended, ~~program now being referred to as~~ the ~~Share~~“Share Redemption ~~Program.~~Program”). Stockholders generally have to hold shares for one year before submitting a redemption request; however, we may waive the one-year holding period in the event of the death, disability or bankruptcy of a stockholder. The number of shares eligible to be redeemed pursuant to the Share Redemption Program is limited as follows: 1) during any calendar year, we will not redeem in excess of 5% of the weighted average number of shares outstanding during the prior calendar year; and 2) funding for the redemption of shares will be limited to the amount of net proceeds we receive from the sale of shares under our Distribution Reinvestment Plan.

Our board of directors may amend, suspend or terminate the Share Redemption Program with 30 days’ notice to our stockholders. We may provide this notice by including such information in a Current Report on Form 8-K or in our annual or quarterly reports, all publicly filed with the SEC, or by a separate mailing to our stockholders.

The redemption price per share for shares redeemed pursuant to the Share Redemption Program will depend upon the class of shares purchased and whether such shares were sold in the Private Offering or in the Public Offering, ~~until our board of directors approves an estimated net asset value per share:~~as well as other factors:

~~Private Offering~~Class A Shares, Class Y Shares, and Class Z Shares: The redemption price per share for Class A shares, ~~sold in the Private Offering~~Class Y shares, and Class Z shares will initially depend on the length of time the stockholder has held such shares as follows:

As long as we are engaged in an offering, the Redemption Amount shall be the lesser of the amount an investor paid for their shares or the price per share in the current ~~offering.~~offering, as applicable. If we are no longer engaged in an offering, the Redemption Amount will be determined by our board of directors. In addition, any such shares redeemed in connection with the death or a qualifying disability of a stockholder (but not due to bankruptcy or commitment to a long-term care facility) may be redeemed at a redemption price equal to the price actually paid for the shares, and only if we are notified of the redemption request within one year of the death or qualifying disability.

Beginning July 10, 2020, the redemption price per share for Class A shares purchased in the Primary Offering shall be equal to the amount paid for such shares.

Class T Shares and Class W Shares: The redemption price per share for Class T shares ~~purchased in the Public Offering is~~and Class W shares will initially be equal to the net investment amount of ~~our~~such shares, which will be based on the “amount available for investment” percentage shown in the estimated use of proceeds table in our prospectus. For each class of shares, this amount will equal the then-current offering price of the shares, less the associated sales commissions, dealer manager fee and estimated organization and offering expenses not reimbursed by our Advisor.

Once our board of directors approves an estimated net asset value per share, as published from time to time in an Annual Report on Form 10-K, a Quarterly Report on Form 10-Q and/or a Current Report on Form 8-K publicly filed with the SEC, the redemption price per share of a given class of shares purchased in either the Private Offering or the Public Offering shall then be equal to the then-current estimated net asset value per share for such class of shares.

There will be several limitations on our ability to redeem shares under the Share Redemption Program including, but not limited to:

For the nine months ended September 30, ~~2018~~2019, we received redemption requests totaling approximately 33,300 shares (approximately $258,000), of which approximately $49,000 was fulfilled in April 2019, $115,000 was fulfilled in July 2019, and approximately $94,000 of which is included in accounts payable and accrued liabilities as of September 30, 2019, and fulfilled in October 2019. For the year ended December 31, ~~2017,~~2018, we ~~did not receive any requests~~received one redemption request for ~~redemption.~~approximately 2,000 shares (approximately $15,000) which was fulfilled in January 2019.

The limited partners of our Operating Partnership will have the right to cause our Operating Partnership to redeem their limited partnership units for cash equal to the value of an equivalent number of our shares, or, at our option, we may redeem their limited partnership units by issuing ~~one~~1 share of our common stock for each limited partnership unit redeemed. These rights may not be exercised under certain circumstances that could cause us to lose our REIT election. Furthermore, limited partners may exercise their redemption rights only after their limited partnership units have been outstanding for one year. Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as it is acting as our advisor pursuant to the Advisory Agreement.

From time to time, we are party to legal proceedings that arise in the ordinary course of our business. We are not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition, nor are we aware of any such legal proceedings contemplated by governmental authorities.

day thereafter through and including December 31, ~~2018. Such distributions payable to each stockholder of record during a month will be paid the following month.~~2019. In connection with this distribution, for the stockholders of Class Y shares, after the stockholder servicing fee is paid, approximately $0.00144 per day will be paid per Class Y share, for the stockholders of Class Z shares, after the dealer manager servicing fee is paid, approximately $0.00157 per day will be paid per Class Z share, for the stockholders of Class T shares, after the stockholder servicing fee is paid, approximately $0.00142 per day will be paid per Class T share and for the stockholders of Class W shares, after the dealer manager servicing fee is paid, approximately $0.00157 per day will be paid per Class W share. Such distributions payable to each stockholder of record during a month will be paid the following month.

On November 4, 2019, we completed the construction of the 23 unit Memory Care Expansion at the Courtyard Property and on November 7, 2019 we moved in our first resident.

As of November ~~5, 2018,~~4, 2019, we had sold approximately ~~0.1 million~~475,000 shares of Class AY Common stock ~~approximately 5,000~~and 153,000 shares of Class TZ Common stock and ~~approximately 32,000 shares of Class W Common stock for~~raised additional gross offering proceeds of ~~$1.2~~approximately $5.8 million in our Primary Offering.

Subsequent to September 30, 2019, we paid down an additional $0.8 million on the outstanding principal balance of the Utah Bridge Loan, reducing the outstanding balance to approximately $8.8 million as of November 4, 2019.

On October ~~9, 2018,~~17, 2019, we ~~received approval from~~drew an additional $0.7 million on the ~~lender under the Freddie Mac Portland Loan~~Courtyard Delayed Draw Commitment loan to ~~commence~~fund construction onfor the Memory Care Expansion, atincreasing the ~~Portland Property. In connection with this approval: (i) we drew~~outstanding balance to approximately $2.5 million under the Portland Delayed Draw Commitment in order to fund certain construction reserves required by our lender and (ii) we executed a guaranty of completion which provides such lender with ~~an absolute, unconditional and irrevocable guaranty by us for the completion of the construction.~~$11.7 million.

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our financial statements and notes thereto contained elsewhere in this report, as well as with our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our ~~Registration Statement~~Annual Report on Form ~~S-11 (SEC Registration No. 333-220646).~~10-K for the year ended December 31, 2018. See also “Cautionary Note Regarding Forward Looking Statements” preceding Part I.

Strategic Student & Senior Housing Trust, Inc. was formed on October 4, 2016 and commenced formal operations on June 28, 2017, as discussed below. We were formed under the MGCL for the purpose of engaging in the business of investing in student housing and senior housing properties and related real estate investments. We elected to be treated as a REIT under the Internal Revenue Code for federal income tax purposes beginning with our taxable year ended December 31, 2017.

On January 27, 2017, pursuant to a confidential private placement memorandum, we commenced a private offering of up to $100,000,000 in shares of our common stock (the “Primary Private Offering”) and 1,000,000 shares of common stock pursuant to our distribution reinvestment plan (together with the Primary Private Offering, the “Private Offering”). The Private Offering required a minimum offering amount of $1,000,000, which we met on August 4, 2017. Our Private Offering terminated on March 15, 2018. We raised offering proceeds of approximately $93 million from the issuance of approximately 10.8 million shares pursuant to the Private Offering. Please see the Notes to the Consolidated Financial Statements contained elsewhere in this report for additional information. Upon the commencement of our Public Offering, discussed below, and the filing of the articles of amendment to our charter, all outstanding common stock was redesignated as Class A common stock.

On May 1, 2018, we commenced a public offering of a maximum of $1.0 billion in common shares for sale to the public (the “Primary Offering”) and $95.0 million in common shares for sale pursuant to our distribution reinvestment plan (together with the Primary Offering, the “Public Offering,” and collectively with the Private Offering, the “Offerings”), consisting of three classes of shares: Class A shares, ~~for $10.33 per share (up to $450 million in shares),~~ Class T shares, ~~for $10.00 per share (up to $450 million in shares),~~and Class W shares.

On June 21, 2019, we suspended the sale of Class A shares, Class T shares, and Class W shares ~~for $9.40~~in the Primary Offering and filed a Post-Effective Amendment to our Registration Statement to register two new classes of shares (Class Y common stock and Class Z common stock) with the SEC. On July 10, 2019, the amendment to our Registration Statement was declared effective by the SEC. Effective as of July 10, 2019, we are now offering Class Y shares (up to $700 million in shares) and Class Z shares (up to $300 million in shares) in our Primary Offering at a price of $9.30 per share ~~(up~~and are offering Class A shares, Class T shares, Class W shares, Class Y shares, and Class Z shares pursuant to ~~$100 million in shares).~~our distribution reinvestment plan at a price of $9.30 per share. As of September 30, ~~2018,~~2019, we had sold approximately ~~51,000~~362,000 Class A shares, noapproximately 70,000 Class T shares, approximately 83,000 Class W shares, approximately 261,000 Class Y shares, and approximately ~~27,000~~144,000 Class WZ shares for gross offering proceeds of approximately ~~$750,000~~$8.9 million in our ~~Public~~Primary Offering.

As of September 30, ~~2018,~~2019, we owned (i) two student housing properties, (ii) four senior housing properties, ~~and~~(iii) an approximately 2.6% beneficial interest in ~~a DST that owns another student housing property.~~Reno Student Housing, and (iv) an approximately 1.4% beneficial interest in Power 5 Conference Student Housing.

As of September 30, ~~2018,~~2019, our student housing property portfolio was comprised as follows:

On February 23, 2018, we purchased our first three senior housing properties, which are located near Salt Lake City, Utah and are known as ~~The~~the Wellington, Cottonwood Creek and ~~The~~ Charleston ~~(collectively, the “Salt Lake Properties”).~~properties. On August 31, 2018, we purchased an additional senior housing property (the ~~“Portland~~“Courtyard Property”) located in Portland, Oregon.

As of September 30, ~~2018,~~2019, our senior housing property portfolio was comprised as follows:

We have established accounting policies which conform to generally accepted accounting principles (“GAAP”). Preparing consolidated financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. Following is a discussion of the estimates and assumptions used in setting accounting policies that we consider critical in the presentation of our consolidated financial statements. Many estimates and assumptions involved in the application of GAAP may have a material impact on our financial condition or operating performance, or on the comparability of such information to amounts reported for other periods, because of the subjectivity and judgment required to account for highly uncertain items or the susceptibility of such items to change. These estimates and assumptions affect our reported amounts of assets and liabilities, our disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and our reported amounts of revenues and expenses during the periods covered by the consolidated financial statements contained elsewhere in this report. If management’s judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied or different amounts of assets, liabilities, revenues and expenses would have been recorded, thus resulting in a materially different presentation of the consolidated financial statements or materially different amounts being reported in the consolidated financial statements. Additionally, other companies may use different estimates and assumptions that may impact the comparability of our consolidated financial condition and results of operations to those companies.

We believe that our critical accounting policies include the following: real estate purchase price allocations; the evaluation of whether any of our long-lived assets have been impaired; the determination of the useful lives of our long-lived assets; and the evaluation of the consolidation of our interests in joint ventures. The following discussion of these policies supplements, but does not supplant the description of our significant accounting policies, as contained in Note 2 of the Notes to the Consolidated Financial Statements contained elsewhere in this report, and is intended to present our analysis of the uncertainties involved in arriving upon and applying each policy.

We account for acquisitions in accordance with GAAP which requires that we allocate the purchase price of a property to the tangible and intangible assets acquired and the liabilities assumed based on their relative fair values. This guidance requires us to make significant estimates and assumptions, including fair value estimates, which requires the use of significant unobservable inputs as of the acquisition date.

The value of the tangible assets, consisting of land and buildings, is determined as if vacant. Because we believe that substantially all of the leases in place at properties we will acquire will be at market rates, as the majority of the leases are one year or less, we do not expect to allocate any portion of the purchase prices to above or below market leases. Acquisitions of portfolios of properties are allocated to the individual properties based upon an income approach or a cash

flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size, age, and location of the individual property along with current and projected occupancy and rental rate levels or appraised values, if available.

Our allocations of purchase prices could result in a materially different presentation of the consolidated financial statements or materially different amounts being reported in the consolidated financial statements, as such allocations may vary dramatically based on the estimates and assumptions we use.

The majority of our assets, other than cash and cash equivalents, ~~and~~ restricted cash, and other assets consist of long-lived real estate assets as well as intangible assets related to our acquisitions. We will evaluate such assets for impairment based on events and changes in circumstances that may arise in the future and that may impact the carrying amounts of our long-lived assets. When indicators of potential impairment are present, we will assess the recoverability of the particular asset by determining whether the carrying value of the asset will be recovered, through an evaluation of the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. This evaluation is based on a number of estimates and assumptions. Based on this evaluation, if the expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived asset and recognize an impairment loss. Our evaluation of the impairment of long-lived assets could result in a materially different presentation of the consolidated financial statements or materially different amounts being reported in the consolidated financial statements, as the amount of impairment loss recognized, if any, may vary based on the estimates and assumptions we use.

We assess the useful lives of the assets underlying our properties based upon a subjective determination of the period of future benefit for each asset. We record depreciation expense with respect to these assets based upon the estimated useful lives we determine. Our determinations of the useful lives of the assets could result in a materially different presentation of the consolidated financial statements or materially different amounts being reported in the consolidated financial statements, as such determinations, and the corresponding amount of depreciation expense, may vary dramatically based on the estimates and assumptions we use.

We will evaluate the consolidation of our investments in joint ventures in accordance with relevant accounting guidance. This evaluation requires us to determine whether we have a controlling interest in a joint venture through a means other than voting rights, and, if so, such joint venture may be required to be consolidated in our consolidated financial statements. Our evaluation of our joint ventures under such accounting guidance could result in a materially different presentation of the consolidated financial statements or materially different amounts being reported in the consolidated financial statements, as the joint venture entities included in our consolidated financial statements may vary based on the estimates and assumptions we use.

We made an election to be taxed as a REIT, under Sections 856 through 860 of the Code, commencing with our taxable year ended December 31, 2017. To continue to qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to currently distribute at least 90% of the REIT’s ordinary taxable income to stockholders. As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the IRS grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we are organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for federal income tax purposes.

As of September 30, ~~2018,~~2019, we have derived revenues principally from rents and related fees received from residents of our student housing and senior housing properties and to a lesser extent from other services provided at our senior housing properties. Our operating results depend significantly on our ability to successfully acquire additional student housing and

senior housing properties, retain our existing residents and lease our available units to new residents, while maintaining and, where possible, increasing rates. Additionally, our operating results depend on our residents making their required payments to us.

Competition in the markets in which we operate is significant and affects the occupancy levels, rental rates, rental revenues, fees and operating expenses of our student housing and senior housing properties. Development of any new student housing or senior housing properties would intensify competition in the markets in which we operate and could negatively impact our results.

On June 28, 2017, we purchased the Fayetteville Property and commenced formal operations. On September 28, 2017, we purchased our second property, the Tallahassee Property. On February 23, 2018, we purchased our first three senior housing ~~properties,~~properties: the ~~Salt Lake Properties.~~Wellington, Cottonwood Creek, and Charleston properties. On August 31, 2018, we purchased our fourth senior housing property, the ~~Portland~~Courtyard Property. Operating results in future periods will depend on the results of operations of these properties and additional student housing and senior housing properties that we may acquire.

As of September 30, 2019, we ~~did not acquire~~owned two student and four senior housing properties. The comparability of our ~~first property~~results of operations was significantly affected by our ongoing acquisition activity in 2018. The three months ended September 30, 2019 include a full three months of results for our two student housing properties and ~~commence formal operations until June 2017,~~our four senior housing properties. The three months ended September 30, 2018 includes a full three months of results for our two student housing properties and three senior housing properties acquired on February 23, 2018 and a partial period of results for our Courtyard Property acquired on August 31, 2018.The nine months ended September 30, 2019 include a full nine months of results for our two student housing properties and our four senior housing properties. The nine months ended September 30, 2018 includes a full nine months of results for our two student housing properties and a partial period of results for our four senior housing properties.Therefore, we believe there is little basis for comparison between the three and nine months ended September 30, ~~2018~~2019 and ~~the three and nine months ended September 30, 2017.~~ 2018.

We expect revenues and expenses to increase in future periods as we acquire additional properties, as well as from recognizing full period operating results for the three senior housing properties acquired on February 23, 2018 and the fourth senior housing property acquired on August 31, 2018.

properties. Our results of operations for the three and nine months ended September 30, ~~2018~~2019 are not indicative of those expected in future periods as we expect that revenue, operating expenses, depreciation expense, amortization expense, acquisition expense and interest expense will each increase in future periods as a result of ~~recognizing a full period of operating results for acquisitions completed during the three and nine months ended September 30, 2018 and~~ anticipated future acquisitions.

Comparison of Operating Results for the Three Months Ended September 30, ~~2018~~2019 and ~~2017~~2018

Leasing and related revenues –- student for the three months ended September 30, ~~2018~~2019 were approximately ~~$1.8~~$1.7 million, as compared to approximately ~~$1.3~~$1.8 million for the three months ended September 30, ~~2017, an increase~~2018, a decrease of approximately ~~$0.5~~$0.1 million. The ~~increase~~decrease is primarily attributable to a ~~full quarter of operations for~~decrease in occupancy at our ~~two student housing properties, compared to a partial quarter of activity for one student housing property acquired in the third quarter of 2017.~~Fayetteville property. We expect such revenues ~~primarily~~ to ~~increase~~fluctuate in future periods commensurate with our future leasing activity and student housing acquisition activity.

Leasing and related revenues –- senior for the three months ended September 30, ~~2018~~2019 were approximately ~~$4.1~~$6.6 million, as compared to ~~none~~$4.1 million for the three months ended September 30, ~~2017.~~2018, an increase of approximately $2.5 million. The revenues ~~are attributable to~~for the three months ended September 30, 2019 include a full period of results for our four senior housing properties. The revenues for the three months ended September 30, 2018 include a full period of results for our three senior housing properties acquired in ~~the first quarter of~~February 2018 and ~~one~~a partial period of results for our Courtyard Property acquired in ~~the third quarter of~~August 2018. We expect such revenues ~~primarily~~ to increase in future periods commensurate with our future senior housing acquisition activity and commensurate with our future leasing activity.

Property operating expenses –- student ~~for the three months ended September 30, 2018~~ were approximately $1.2 ~~million, as compared to $0.6~~ million for the three months ended September 30, 2017, an increase of approximately $0.6 million. The increase is primarily attributable to a full quarter of operations for our two student housing properties, compared to a partial quarter of activity for one student housing property acquired in the third quarter of 2017.2019 and 2018. Such ~~property operating~~ expenses ~~includes~~include the cost to operate our student housing properties including payroll, utilities, insurance, real estate taxes, repairs and maintenance, marketing, and ~~marketing.~~third-party property management fees. We expect such property operating expenses ~~primarily~~ to increase in future periods commensurate with our future acquisition activity.

Property operating expenses –- senior for the three months ended September 30, ~~2018~~2019 were approximately ~~$2.7~~$4.3 million, as compared to ~~none~~$2.7 million for the three months ended September 30, ~~2017.~~2018, an increase of approximately $1.6 million. Such property operating expenses include the cost to operate our senior housing properties including payroll, food service costs, utilities, insurance, real estate taxes, repairs and maintenance, marketing, and ~~marketing. These~~third-party property management fees. The property operating expenses ~~are attributable to~~- senior for the three months ended September 30, 2019 include a full period of results for our four senior housing properties. The property operating expenses - senior for the three months ended September 30, 2018 include a full period of results for our three senior housing properties

acquired in ~~the first quarter of~~February 2018 and a partial period of results for our ~~fourth senior housing property~~Courtyard Property acquired onin August ~~31,~~ 2018. We expect such ~~property operating~~ expenses ~~primarily~~ to increase in future periods commensurate with our future senior housing acquisition activity.

Property operating expenses - affiliates for the three months ended September 30, 2019 were approximately $0.7 million, as compared to approximately $0.5 million for the three months ended September 30, 2018, an increase of approximately $0.2 million. Property operating expenses - affiliates consists of asset management and property management oversight fees. The property operating expenses – affiliates for the three months ended September 30, 2019 are attributable to a full period of results for our two student housing properties and four senior housing properties. The property operating expenses – affiliates for the three months ended September 30, 2018 were approximately $486,000, as compared to approximately $48,000 for the three months ended September 30, 2017, an increase of approximately $438,000. Property operating expenses – affiliates consists of asset management and property management oversight fees due to our advisor. Property operating expenses – affiliates are attributable to our two student housing properties, three senior housing properties that we owned during the entire third quarter of 2018 and one senior housing property that we owned for part of the third quarter. For the third quarter of 2017, the expenses were attributable to one student housing property we owned for the entire third quarter of 2017 and another we owned for part of the third quarter of 2017. The increase is primarily attributable to a full period of ~~operations during 2018~~results for our ~~2017 acquisitions~~two student housing properties and ~~increases due to the~~our three senior housing properties acquired ~~during~~in February 2018 and a partial period of results for our Courtyard Property acquired in August 2018. ~~To a lesser extent, property operating expenses - affiliates also increased effective May 1, 2018, as prior thereto the Advisor had waived one half of the asset management fees.~~ We expect property operating expenses –- affiliates to increase in future periods commensurate with our future acquisition activity.

General and administrative expenses for the three months ended September 30, ~~2018~~2019 were approximately ~~$0.5~~$0.6 million, as compared to approximately ~~$0.2~~$0.5 million for the three months ended September 30, ~~2017,~~2018, an increase of approximately ~~$0.3~~$0.1 million. ~~The increase was primarily due to our increased operating activity in the third quarter of 2018 as compared to the third quarter of 2017.~~ General and administrative expenses consist primarily of legal expenses, directors’ and officers’ insurance expense, transfer agent expenses, an allocation of a portion of payroll related costs attributable to our ~~advisor~~Advisor and its affiliates, and accounting expenses. The increase was primarily due to our increased operating activity in the three months ended September 30, 2019 as compared to the three months ended September 30, 2018. We expect general and administrative expenses to increase in the future as our operational activity increases.

Depreciation and intangible amortization expenses for the three months ended September 30, ~~2018~~2019 were approximately ~~$3.4~~$3.9 million, as compared to ~~depreciation and intangible amortization expenses~~approximately $3.4 million for the three months ended September 30, ~~2017 of approximately of $1.3 million,~~2018, an increase of approximately ~~$2.1~~$0.5 million. Depreciation expense consists primarily of depreciation on the buildings, site improvements, and furniture, fixtures and equipment at our properties. Intangible amortization expense consists of the amortization of intangible assets, atwhich is comprised of in-place lease assets resulting from our ~~properties. The increase is primarily attributable to a full period of operations during 2018 for our 2017 acquisition~~s ~~and due to the properties acquired during 2018.~~ property acquisitions.

Acquisition expenses –- affiliates for the three months ended September 30, 2019 were none, as compared to acquisition expenses - affiliates for the three months ended September 30, 2018 ~~were approximately $58,000, as compared to acquisition expenses – affiliates for the three months ended September 30, 2017~~ of approximately ~~$1.0~~$0.1 million, a decrease of approximately ~~$0.9~~$0.1 million. These acquisition expenses primarily relate to costs incurred related to student housing and senior housing properties which were acquired in the ~~current~~respective period or ~~may be~~were acquired in future periods and such costs did not meet our capitalization criteria. Acquisition expenses –- affiliates ~~is also~~are expected to continue to decrease primarily due to the adoption of new accounting guidance on January 1, 2018, which resulted in the majority of such costs being capitalized into the cost basis of the assets acquired.fluctuate commensurate with our acquisition activities.

Other acquisition expenses for the three months ended September 30, ~~2018~~2019 were ~~approximately $35,000,~~none, as compared to other acquisition expenses for the three months ended September 30, ~~2017~~2018 of approximately ~~$0.2 million,~~$35,000, a decrease of approximately ~~$0.2 million.~~$35,000. These other acquisition expenses primarily relate to pursuit costs incurred for student housing and senior housing properties which were acquired in the ~~current~~respective period or may be acquired in future periods and such costs did not meet our capitalization criteria. Other acquisition expenses ~~decreased primarily due~~are expected to ~~the adoption of new accounting guidance on January 1, 2018, which resulted in certain transaction costs being capitalized into the cost basis of the assets acquired.~~fluctuate commensurate with our acquisition activities.

Interest expense for the three months ended September 30, ~~2018~~2019 was approximately ~~$1.8~~$2.5 million, as compared to interest expense for the three months ended September 30, ~~2017~~2018 of approximately ~~$0.5~~$1.8 million, an increase of approximately ~~$1.3~~$0.7 million. Interest expense relates to debt financings used to acquire our two student housing properties and four senior housing properties that we owned during the ~~third quarter of 2018~~three months ended September 30, 2019 compared to ~~one~~two student housing ~~property that~~properties and three senior housing properties we owned

during the ~~entire third quarter of 2017~~full three month period ended September 30, 2018 and ~~another we owned for part of~~ the ~~third quarter of 2017.~~Courtyard Property acquired in August 2018. We expect interest expense to ~~increase~~fluctuate in future periods commensurate with our future debt level.

Interest expense –- debt issuance costs for each of the three months ended September 30, 2019 and 2018 was approximately $0.2 ~~million, as compared to approximately $0.5 million for the three months ended September 30, 2017.~~million. Interest expense –- debt issuance costs reflects the amortization of costs incurred in connection with obtaining debt related to the acquisition of our properties. We expect interest expense –- debt issuance costs to fluctuate commensurate with our future financing activity.

Comparison of Operating Results for the Nine Months Ended September 30, ~~2018~~2019 and ~~2017~~2018

Leasing and related revenues –- student for the nine months ended September 30, ~~2018~~2019 were approximately ~~$6.4~~$5.7 million, as compared to approximately ~~$1.4~~$6.4 million for the nine months ended September 30, ~~2017, an increase~~2018, a decrease of approximately ~~$5.0~~$0.7 million. The ~~increase~~decrease is primarily attributable to a ~~full nine months of operations for~~decrease in occupancy at our two student housing properties, compared to a partial period of activity for one student housing property acquired in the second quarter of 2017 and another partial period of activity for our other student housing property acquired in the third quarter of 2017.Fayetteville property. We expect such revenues ~~primarily~~ to ~~increase~~fluctuate in future periods commensurate with our future leasing activity and student housing acquisition activity.

Leasing and related revenues –- senior for the nine months ended September 30, ~~2018~~2019 were approximately ~~$8.5~~$19.4 million, as compared to ~~none~~$8.5 million for the nine months ended September 30, ~~2017.~~2018, an increase of approximately $10.9 million. The revenues ~~are attributable to~~for the nine months ended September 30, 2019 include a full period of results for our four senior housing properties. The revenues for the nine months ended September 30, 2018 include only a partial period of results for our three senior housing properties acquired in ~~the first quarter of~~February 2018 and our ~~fourth senior housing property~~Courtyard Property acquired in ~~the third quarter of~~August 2018. We expect such revenues ~~primarily~~ to increase in future periods commensurate with our future senior housing acquisition ~~activity, as well as from recognizing a full period of results for our senior housing acquisitions completed during the nine months ended September 30, 2018.~~activity.

Property operating expenses –- student for the nine months ended September 30, 2019 and 2018 were approximately $3.1 ~~million, as compared to approximately $0.6 million for the nine months ended September 30, 2017, an increase of approximately $2.5~~ million. The increase is primarily attributable to a full nine months of operations for our two student housing properties, compared to partial period of activity for one student housing property acquired in the second quarter of 2017 and another acquired in the third quarter of 2017. Such expenses include the cost to operate our student housing properties including payroll, utilities, insurance, real estate taxes, repairs and maintenance, marketing, and ~~marketing.~~third-party property management fees. We expect such property operating expenses ~~primarily~~ to increase in future periods commensurate with our future acquisition activity.

Property operating expenses –- senior for the nine months ended September 30, ~~2018~~2019 were approximately ~~$5.5~~$12.5 million, as compared to ~~none~~$5.5 million for the nine months ended September 30, ~~2017.~~2018, an increase of approximately $7.0 million. Such property operating expenses include the cost to operate our senior housing properties including payroll, food service costs, utilities, insurance, real estate taxes, repairs and maintenance, marketing, and ~~marketing.~~third-party property management fees. The property operating expenses - senior for the nine months ended September 30, 2019 include a full period of results for our four senior housing properties. The property operating expenses - senior for the nine months ended September 30, 2018 include only a partial period of results for our three senior housing properties acquired in February 2018 and our Courtyard Property acquired in August 2018. We expect such ~~property operating~~ expenses to increase in future periods commensurate with our future senior housing acquisition ~~activity, as well as from recognizing full period operating results for acquisitions completed during the nine months ended September 30, 2018.~~activity.

Property operating expenses –- affiliates for the nine months ended September 30, ~~2018~~2019 were approximately ~~$0.9~~$2.1 million, as compared to approximately ~~$49,000~~$0.9 million for the nine months ended September 30, ~~2017,~~2018, an increase of approximately ~~$0.8~~$1.2 million. Property operating expenses –- affiliates consists of asset management and property management oversight fees due to our ~~advisor.~~Advisor. The property operating expenses – affiliates for the nine months ended September 30, 2019 are attributable to a full period of results for our two student housing properties and four senior housing ~~properties that we owned during~~properties. The property operating expenses – affiliates for the nine months ended September 30, 2018 ~~and two student housing properties we owned for partial periods during the nine months ended September 30, 2017. The increase is primarily~~are attributable to a full period of ~~operations during 2018~~results for our ~~2017 acquisitions~~two student housing properties and ~~increases due to the~~a partial period of results for our three senior housing properties acquired ~~during~~in February 2018 and our Courtyard Property acquired in August 2018. To a lesser extent, property operating expenses - affiliates also increased effective May 1, 2018, as prior thereto ~~the~~our Advisor had waived one half of the asset management fees. We expect property operating expenses –- affiliates to increase in future periods commensurate with our future acquisition ~~activity, as well as from recognizing full period operating results for acquisitions completed during the nine months ended September 30, 2018.~~activity.

General and administrative expenses for the nine months ended September 30, ~~2018~~2019 were approximately ~~$1.3~~$1.8 million, as compared to approximately ~~$0.3~~$1.3 million for the nine months ended September 30, ~~2017,~~2018, an increase of approximately ~~$1.0~~$0.5 million. General and administrative expenses consist primarily of legal expenses, directors’ and officers’ insurance expense, transfer agent expenses, an allocation of a portion of payroll related costs attributable to our Advisor and its affiliates, and accounting expenses. The increase was primarily due to our increased operating activity in the nine months ended September 30, ~~2018~~2019 as compared to the nine months ended September 30, 2017. General and administrative expenses consist primarily of legal expenses, directors’ and officers’ insurance expense, an allocation of a portion of payroll related costs attributable to our advisor and its affiliates and accounting expenses.2018. We expect general and administrative expenses to increase in the future as our operational activity increases.

Depreciation and intangible amortization expenses for the nine months ended September 30, ~~2018~~2019 were approximately ~~$10.2~~$11.5 million, as compared to depreciation and intangible amortization expenses for the nine months ended September 30, ~~2017~~2018 of approximately of ~~$1.4~~$10.2 million, an increase of approximately ~~$8.8~~$1.3 million. Depreciation expense consists primarily of depreciation on the buildings, site improvements, and furniture, fixtures and equipment at our properties. Intangible amortization expense consists of the amortization of intangible assets, atwhich is comprised of in-place lease assets resulting from our ~~properties.~~property acquisitions. The increase is primarily attributable to a full period of operations ~~during~~for the nine months ended September 30, 2019 for our two student housing properties and four senior housing properties, compared to a full period of operations for our two student housing properties and partial period of operations for our three senior housing properties acquired in February 2018 and our Courtyard Property acquired in August 2018 for ~~our 2017 acquisition~~s ~~and due to~~ the ~~properties acquired during~~nine months ended September 30, 2018.

Acquisition expenses –- affiliates for the nine months ended September 30, 2019 were none, as compared to acquisition expenses - affiliates for the nine months ended September 30, 2018 ~~were~~of approximately $0.1 ~~million, as compared to acquisition expenses – affiliates for the nine months ended September 30, 2017 of approximately $2.2~~ million, a decrease of approximately ~~$2.1~~$0.1 million. These acquisition expenses primarily relate to costs incurred related to student housing ~~and~~or senior housing properties which were acquired in the respective period or ~~may be~~were acquired in future periods and such costs did not meet our capitalization criteria. Acquisition expenses –- affiliates ~~decreased primarily due~~are expected to ~~the adoption of new accounting guidance on January 1, 2018, which resulted in the majority of such costs being capitalized into the cost basis of the assets acquired.~~fluctuate commensurate with our acquisition activities.

Other acquisition expenses for the nine months ended September 30, ~~2018~~2019 were ~~approximately $0.3 million,~~none, as compared to other acquisition expenses for the nine months ended September 30, ~~2017~~2018 of approximately ~~$0.4~~$0.3 million, a decrease of approximately ~~$0.1~~$0.3 million. These other acquisition expenses primarily relate to pursuit costs incurred for student housing ~~and~~or senior housing properties which were acquired in the respective period or ~~may be~~were acquired in future periods and such costs did not meet our capitalization criteria. Other acquisition expenses ~~is also~~are expected to continue to decrease primarily due to the adoption of new accounting guidance on January 1, 2018, which resulted in certain transaction costs being capitalized into the cost basis of the assets acquired.fluctuate commensurate with our acquisition activities.

Interest expense for the nine months ended September 30, ~~2018~~2019 was approximately ~~$4.1~~$7.7 million, as compared to interest expense for the nine months ended September 30, ~~2017~~2018 of approximately ~~$0.5~~$4.1 million, an increase of approximately $3.6 million. Interest expense relates to debt financings used to acquire our two student housing properties and four senior housing properties that we owned during the full nine ~~months~~month period ended September 30, ~~2018~~2019, compared to two student housing properties ~~that~~ we owned during the full nine ~~months~~month period ended September 30, ~~2017. We expect interest expense to increase~~2018 and the four senior housing properties we owned for a partial period in ~~future~~

~~periods commensurate with our future debt level, as well as from recognizing full period operating results for acquisitions completed during~~ the nine months ended September 30, 2018. We expect interest expense to fluctuate in future periods commensurate with our future debt level.

Interest expense –- debt issuance costs for each of the nine months ended September 30, 2019 was approximately $0.6 million, as compared to interest expense - debt issuance costs for the nine months ended September 30, 2018 ~~was~~of approximately $0.5 million, ~~as compared to interest – debt issuance costs~~an increase of approximately ~~$0.5~~$0.1 million. Interest expense –- debt issuance costs reflects the amortization of costs incurred in connection with obtaining debt related to the acquisition of our properties. We expect interest expense –- debt issuance costs to fluctuate commensurate with our future financing ~~activity, as well as from recognizing full period operating results for debt related to acquisitions completed during the nine months ended September 30, 2018.~~ activity.

Below is information regarding our cash flows for operating, investing and financing activities for the nine months ended September 30, ~~2018~~2019 and ~~2017,~~2018, is as follows:

Cash flows provided by ~~and used in~~ operating activities for the nine months ended September 30, ~~2018~~2019 and ~~2017~~2018 were approximately ~~$2.0~~$2.7 million and ~~$0.6~~$2.0 million, respectively, a change of approximately ~~$2.6~~$0.7 million. The improvement in cash provided by operating activities was primarily the result of an improvement in working capital of approximately $2.2 million, primarily offset by an increase in our net loss, ~~during the nine months ending September 30, 2018,~~ excluding depreciation and amortization of approximately ~~$2.2~~$1.5 million ~~and improvements in working capital of approximately $0.4 million.~~during the nine months ended September 30, 2019.

Cash flows used in investing activities for the nine months ended September 30, ~~2018~~2019 and ~~2017~~2018 were approximately ~~$170.4~~$9.4 million and ~~$103.5~~$170.4 million, respectively, a change of approximately ~~$66.9~~$161.0 million. The ~~increase~~decrease in cash used ~~for~~in investing activities is primarily the result of ~~an increase~~a decrease in cash used for the purchase of real estate.

Cash flows provided by financing activities for the nine months ended September 30, ~~2018~~2019 and ~~2017~~2018 were approximately ~~$167.3~~$7.1 million and ~~$111.5~~$167.3 million, respectively, a change of approximately ~~$55.8~~$160.2 million. The ~~increase~~decrease in cash provided by financing activities is primarily the result of ~~an increase~~a decrease in net debt inflows of approximately ~~$79.7~~$144.6 million, ~~net of~~ a reduction in net proceeds ~~of approximately $21.6 million from~~related to the issuance of common stock and preferred equity of approximately $15.0 million and increased cash distributions of approximately ~~$3.0~~$0.6 million.

Our Advisor funded and was responsible for our organization and offering costs on our behalf, prior to the commencement of our formal operations on June 28, 2017 when we acquired the Fayetteville Property. Currently, we generally expect that we will meet our short-term operating liquidity requirements from the combination of proceeds from our Public Offering, proceeds or refinancing from secured or unsecured financing from banks or other lenders, issuance of preferred units in our ~~operating partnership,~~Operating Partnership, net cash provided by property operations, and advances or investments from our Advisor or its affiliates, which will be repaid, without interest, as funds are available after meeting our current liquidity requirements, subject to the limitations on reimbursement set forth in our Advisory Agreement.

On September ~~26, 2018,~~24, 2019, our board of directors declared a daily distribution rate for the fourth quarter of ~~2018~~2019 of $0.0016980822 per day per share on the outstanding shares of common stock payable to stockholders of record as shown on our books at the close of business on each day during the period, commencing on October 1, ~~2018~~2019 and continuing on each day thereafter through and including December 31, ~~2018. Such distributions payable to each stockholder of record during a month will be paid the following month.~~2019. In connection with this distribution, for the stockholders of Class Y shares, after the stockholder servicing fee is paid, approximately $0.00144 per day will be paid per Class Y share, for the stockholders of Class Z shares, after the dealer manager servicing fee is paid, approximately $0.00157 per day will be paid per Class Z share, for the stockholders of Class T shares, after the stockholder servicing fee is paid, approximately ~~$0.0014241~~$0.00142 per day will be paid per Class T share and for the stockholders of Class W shares, after the dealer manager servicing fee is paid, approximately ~~$0.0015693~~$0.00157 per day will be paid per Class W share. Such distributions payable to each stockholder of record during a month will be paid the following month

Currently, we are making distributions to our stockholders using a combination of cash flows from operations and the proceeds from the Public Offering in anticipation of additional future cash flow. As such, this reduces the amount of capital we will ultimately invest in properties. Because substantially all of our operations are performed indirectly through our Operating Partnership, our ability to pay distributions depends in large part on our Operating Partnership’s ability to pay distributions to its partners, including to us. In the event we do not have enough cash from operations to fund cash distributions, we may borrow, issue additional securities or sell assets in order to fund the distributions or make the distributions out of net proceeds from our Public Offering. Though we presently intend to pay only cash distributions, and potentially stock distributions, we are authorized by our charter to pay in-kind distributions of readily marketable securities, distributions of beneficial interests in a liquidating trust established for our dissolution and the liquidation of our assets in

accordance with the terms of the charter or distributions that meet all of the following conditions: (a) our board of directors advises each stockholder of the risks associated with direct ownership of the property; (b) our board of directors offers each stockholder the election of receiving such in-kind distributions; and (c) in-kind distributions are only made to those stockholders who accept such offer.

During our Public Offering, we may raise capital more quickly than we acquire income-producing assets, we may not be able to pay distributions from our cash flows from operations, in which case distributions may be paid in part from debt financing or from proceeds from our Public Offering. The payment of distributions from sources other than cash flows from operations may reduce the amount of proceeds available for investment and operations or cause us to incur additional interest expense as a result of borrowed funds.

Over the long-term, we expect that a greater percentage of our distributions will be paid from cash flows from operations. However, our operating performance cannot be accurately predicted and may deteriorate in the future due to numerous factors, including our ability to raise and invest capital at favorable yields, the financial performance of our investments in the current real estate and financial environment and the types and mix of investment in our portfolio. As a result, future distributions declared and paid may exceed cash flow from operations.

Distributions are paid to our stockholders based on the record date selected by our board of directors. We currently pay distributions monthly based on daily declaration and record dates so that investors may be entitled to distributions immediately upon purchasing our shares. We expect to continue to regularly pay distributions unless our results of operations, our general financial condition, general economic conditions, or other factors inhibit us from doing so. Distributions are authorized at the discretion of our board of directors, which are directed, in substantial part, by its obligation to cause us to comply with the REIT requirements of the Code. Our board of directors may increase, decrease or eliminate the distribution rate that is being paid at any time. Distributions are made on all classes of our common stock at the same time. The per share amount of distributions on ~~Class A shares, Class T shares and Class W~~different classes of shares will likely differ because of different allocations of class-specific expenses. Specifically, distributions on Class T shares, Class W shares, Class Y shares, and Class WZ shares will likely be lower than distributions on Class A shares because Class T shares and Class Y shares are subject to ongoing stockholder servicing fees and Class W shares and Class Z shares are subject to ongoing dealer manager servicing fees. The funds we receive from operations that are available for distribution may be affected by a number of factors, including the following:

The following shows our distributions and the sources of such distributions for ~~the~~ nine months ended September 30, 2019 and 2018.

We did not commence paying distributions until September 2017. From our inception through September 30, ~~2018,~~2019, we paid cumulative distributions of approximately ~~$5.9~~$13.0 million including approximately $0.2 million related to our preferred unitholders, as compared to cumulative net loss attributable to our common stockholders of approximately ~~$17.6~~$37.1 million which includes acquisition related expenses of approximately $3.4 million and non-cash depreciation and amortization of approximately ~~$14.0~~$29.2 million.

For the nine months ended September 30, ~~2018,~~2019, we paid total distributions of approximately ~~$4.8~~$5.3 million, as compared to net loss attributable to our common stockholders of approximately ~~$11.3~~$14.8 million. Net loss attributable to our common stockholders for the nine months ended September 30, ~~2018~~2019 includes non-cash depreciation and amortization of approximately ~~$10.2 million, and acquisition related expenses of approximately $0.5~~$11.5 million.

We must distribute to our stockholders at least 90% of our taxable income each year in order to meet the requirements for being treated as a REIT under the Code. Our directors may authorize distributions in excess of this percentage as they deem appropriate. Because we may receive income from interest or rents at various times during our fiscal year, distributions may not reflect our income earned in that particular distribution period, but may be made in anticipation of cash flow that we expect to receive during a later period and may be made in advance of actual receipt of funds in an attempt to make distributions relatively uniform. To allow for such differences in timing between the receipt of income and the payment of expenses, and the effect of required debt payments, among other things, we could be required to borrow funds from third parties on a short-term basis, issue new securities, or sell assets to meet the distribution requirements that are necessary to achieve the tax benefits associated with qualifying as a REIT. We are not prohibited from undertaking such activities by our charter, bylaws or investment policies, and we may use an unlimited amount from any source to pay our distributions. These methods of obtaining funding could affect future distributions by increasing operating costs and decreasing available cash, which could reduce the value of our stockholders’ investment in our shares. In addition, such distributions may constitute a return of investors’ capital.

We have not been able to and may not be able to pay distributions solely from our cash flows from operations, in which case distributions may be paid in part from debt financing or from proceeds from the issuance of common stock in our Public Offering. The payment of distributions from sources other than cash flows from operations may reduce the amount of proceeds available for investment and operations or cause us to incur additional interest expense as a result of
borrowed funds.

As of September 30, ~~2018,~~2019, our total indebtedness was approximately ~~$204.5~~$210.7 million, which included approximately $163.1 million in fixed rate debt and ~~$41.4~~$47.6 million in variable rate ~~debt.~~ debt (the KeyBank Bridge Loans). There is approximately $47.9 million of debt scheduled to mature within the next twelve months from the balance sheet date. We expect to meet such obligations based on funds provided by net equity issuance proceeds and/or a refinancing of the loans prior to their maturity. The KeyBank Bridge Loans impose certain covenant requirements on us and the other parties to the loans, which, if breached could result in an event of default if a waiver is unable to be obtained from the lender. Should we be unable to

maintain compliance with the covenants, the KeyBank Bridge Borrowers expect to be able to obtain a waiver and/or refinance the loans to avoid an event of default. See Note 54 of the Notes to the Consolidated Financial Statements for more information about our indebtedness.

On a long-term basis, our principal demands for funds will be for property acquisitions, either directly or through entity interests, for the payment of operating expenses and distributions, and for the payment of interest on our outstanding indebtedness, if any.

Long-term potential future sources of capital include proceeds from our Public Offering, secured or unsecured financings from banks or other lenders, issuance of equity instruments and undistributed funds from operations. To the extent we are not able to secure requisite financing in the form of a credit facility or other debt, we will be dependent upon proceeds from the issuance of equity securities and cash flows from operating activities in order to meet our long-term liquidity requirements and to fund our distributions.

The following table summarizes our contractual obligations as of September 30, ~~2018:~~2019:

Our ~~investment~~investments in a private placement ~~offering~~offerings by Reno Student Housing, DST isand Power 5 Conference Student Housing I, DST are accounted for under the equity method of accounting. For more information please see Note 87 of the Notes to the Consolidated Financial Statements contained in this report. Other than that, we do not have any relationships with unconsolidated entities or financial partnerships. Such entities are often referred to as structured finance or special purposes entities, which typically are established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. Further, we have not guaranteed any obligations of unconsolidated entities nor do we have any commitments or intent to provide funding to any such entities.

Please see Note 1110 of the Notes to the Consolidated Financial Statements contained ~~elsewhere~~ in this report.

A substantial portion of our student housing leases commence in mid to late August and terminate at the end of July each year, which generally coincides with the commencement of the fall academic term and typically terminate at the completion of the subsequent summer school session. We adjust the lease revenue recognized for this period to align to the period in which the residents have access to their units. Additionally, during the period between the lease termination and subsequent lease commencement, we complete certain maintenance and other improvements, which generally results in additional expense incurred during this period.

Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market sensitive instruments. In pursuing our business plan, we expect that the primary market risk to which we will be exposed is interest rate risk. We may be exposed to the effects of interest rate changes primarily as a result of borrowings used to maintain liquidity and fund acquisition, expansion, and financing of our real estate investment portfolio and operations. Our interest rate risk management objectives isare to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. To achieve our objectives, we may borrow at fixed rates or variable rates. We may also enter into derivative financial instruments such as interest rate swaps and caps in order to mitigate our interest rate risk on a related financial instrument. We will not enter into derivative or interest rate transactions for speculative purposes.

As of September 30, ~~2018,~~2019, our debt consisted of approximately ~~$204~~$210.7 million, which included approximately ~~$163~~$163.1 million in fixed rate debt and ~~$41~~$47.6 million in variable rate debt. Our debt instruments were entered into for other than trading purposes. Changes in interest rates have different impacts on fixed and variable debt. A change in interest rates on fixed rate debt impacts its fair value but has no impact on interest incurred or cash flows. A change in interest rates on the variable debt could impact the interest incurred and cash flows and its fair value. If the underlying rate of the related index on our variable rate debt were to increase or decrease by 100 basis points, the increase or decrease in interest would increase or decrease future earnings and cash flows by approximately ~~$0.4~~$0.5 million annually.

The following table summarizes annual debt maturities and average interest rates on our outstanding debt as of September 30, ~~2018:~~2019:

Year Ending December 31,

2018

2019

2020

2021

2022

Thereafter

Total

Fixed rate debt

$
—

$
—

$
527,944

$
679,120

$
1,011,295

$
160,886,641

$
163,105,000

Average interest rate

4.65
%

4.65
%

4.65
%

4.65
%

4.65
%

4.65
%

4.65
%
Variable rate debt

$
—

$
41,351,864

—

—

—

$
—

$
41,351,864

Average interest rate⁽¹⁾

6.25
%

6.25
%

—

—

—

—

6.25
%

	Year Ending December 31,
	2019		2020				2021			2022			2023			Thereafter			Total
Fixed rate debt	$	—	$	527,944			$	679,120		$	1,011,295		$	1,680,592		$	159,206,049		$	163,105,000
Average interest rate		—		4.65	%			4.65	%		4.65	%		4.64	%		4.89	%		4.69	%
Variable rate debt	$	—	$	47,565,968		⁽²⁾		—			—			—			—		$	47,565,968
Average interest rate⁽¹⁾		—		6.05	%			—			—			—			—			6.05	%

As of the end of the period covered by this report, management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report to ensure that information required to be disclosed in the reports we file and submit under the Exchange Act is recorded, processed, summarized and reported as and when required. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file and submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There have been no changes in our internal control over financial reporting that occurred during the quarter ended September 30, ~~2018~~2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

The following should be read in conjunction with the risk factors set forth in the “Risk Factors” section of our ~~Registration Statement~~Annual Report on Form ~~S-11 (SEC Registration No. 333-220646).~~10-K for the year ended December 31, 2018.

We have incurred a net loss to date, have an accumulated deficit and our operations may not be profitable in ~~2018.~~2019.

We incurred a net loss attributable to common stockholders of approximately ~~$11.3~~$14.8 million for the nine months ended September 30, ~~2018.~~2019. Our accumulated deficit was approximately ~~$17.6~~$37.1 million as of September 30, ~~2018.~~2019. Given that we are still early in our fundraising and acquisition stage, our operations may not be profitable in ~~2018.~~2019.

We have paid, and may continue to pay, distributions from sources other than cash flow from operations, which may include borrowings or the net proceeds of our offerings (which may constitute a return of capital); therefore, we will have fewer funds available for the acquisition of properties, and our stockholders ’ overall return may be reduced. Therefore, it is likely that some or all of the distributions that we make will represent a return of capital to our stockholders, at least in the first few years of operation.

In the event we do not have enough cash from operations to fund our distributions, we may borrow, issue additional securities, or sell assets in order to fund the distributions or make the distributions out of net proceeds from our Offerings (which may constitute a return of capital). Therefore, it is likely that some or all of the distributions that we make will represent a return of capital to our stockholders, at least in the first few years of operation. ~~From the commencement of paying cash distributions in September 2017, through~~For the year ended December 31, 2017, we funded ~~100%~~73.8% of our distributions using proceeds from our Primary Private ~~Offering.~~Offering and 26.2% using proceeds from our distribution reinvestment plan. For the year ended December 31, 2018, we funded 12.9% of our distributions using cash flows from operations, 50.6% using proceeds from the Primary Private Offering and Primary Offering and 36.5% using proceeds from our distribution reinvestment plan. For the nine months ended September 30, ~~2018, the payment~~2019, we funded 50.1% of ~~cash~~our distributions ~~was paid 66.5% from~~using cash flows from operations, 17.1% using proceeds from the Primary Private Offering and ~~33.5%~~Primary Offering and 32.8% using proceeds from ~~proceeds of~~ our ~~Offerings.~~distribution reinvestment plan. We are not prohibited from undertaking such activities by our charter, bylaws, or investment policies, and we may use an unlimited amount from any source to pay our distributions, and it is likely that we will continue to use Public Offering proceeds to fund a majority of our early distributions. Payment of distributions in excess of earnings may have a dilutive effect on the value of our shares. If we pay distributions from sources other than cash flow from operations, we will have fewer funds available for acquiring properties, which may reduce our stockholders’ overall returns. Additionally, to the extent distributions exceed cash flow from operations, a stockholder’s basis in our stock may be reduced and, to the extent distributions exceed a stockholder’s basis, the stockholder may recognize a capital gain.

Our Advisor (a subsidiary of our Sponsor) has agreed to fund our upfront offering expenses. Our Sponsor intends to obtain a loan and provide the proceeds of such loan to the Advisor so that it may fund such upfront offering expenses. Accordingly, if our Sponsor defaults under the loan agreement, our Advisor’s ability to fund such upfront offering expenses may be impaired.

Pursuant to the Advisor Funding Agreement, beginning July 10, 2019, our Advisor agreed to fund the payment of (i) the upfront 3% sales commission for the sale of Class Y shares, (ii) the upfront 3% dealer manager fee for the Class Y shares, and (iii) the estimated 1% organization and offering expenses for the sale of Class Y shares and Class Z shares. Our Sponsor intends to obtain a loan and provide the proceeds of such loan to the Advisor for use in funding such upfront offering expenses. If our Sponsor defaults under the loan agreement, our Sponsor may be unable to provide sufficient funds to the Advisor, in which case the Advisor’s ability to fund such upfront offering expenses would therefore be impaired.

If the Advisory Agreement with our Advisor is terminated on or before July 10, 2029 for any reason other than because of the fraud, gross negligence or willful misconduct of our Advisor, we will be required to pay any applicable contingent acquisition fees.

Our Advisor will be entitled to receive contingent acquisition fees related to student housing and senior housing properties and related real estate investments we acquire on or after July 10, 2019. Our Advisor has agreed to defer the payment of any acquisition fee until our stockholders’ receipt of certain specified returns. However, if the Advisory Agreement is terminated before July 10, 2029, for any reason other than the fraud, gross negligence or willful misconduct of our Advisor, the acquisition fees and financing fees will become immediately due and payable by us. Our board of directors

may decide against terminating the Advisory Agreement to avoid paying the contingent acquisition fees due upon termination of the Advisory Agreement before July 10, 2029. Thus, there may be conflicts of interest with respect to the termination of the Advisory Agreement and the payment of the contingent acquisition fees.

Until March 15, 2018, we were engaged in our Primary Private Offering of up to $100 million in shares of common stock to accredited investors (as defined in Rule 501 under the Act) pursuant to a confidential private placement memorandum dated January 27, 2017, as amended and supplemented. We terminated our Primary Private Offering on March 15, 2018. We received net offering proceeds of approximately $83.5 million from the sale of approximately 10.7 million shares of common stock in the Primary Private Offering after commissions, fees and expenses. We incurred approximately $6.7 million in sales commissions and dealer manager fees in connection with the Private Offering. Select Capital Corporation was the dealer manager for the Private Offering.

Each of the purchasers of our common stock in the Private Offering has represented to us that he or she is an accredited investor. Based upon these representations, we believe that the issuances of our common stock were exempt from the registration requirements pursuant to Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated thereunder.

The exhibits required to be filed with this report are set forth on the Exhibit Index hereto and incorporated by reference herein.

The following exhibits are included in this report on Form 10-Q for the period ended September 30, ~~2018~~2019 (and are numbered in accordance with Item 601 of Regulation S-K).

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐☒
		Emerging growth company	☒


		Page No.
	Cautionary Note Regarding Forward-Looking Statements	3

PART I.	FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements:	4

	Consolidated Balance Sheets as of September 30, ~~2018~~2019 (unaudited) and December 31, ~~2017~~2018	5

	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2019 and 2018 ~~and 2017~~ (unaudited)	6

	Consolidated ~~Statement~~Statements of Equity for the ~~Nine~~Three Months Ended March 31, June 30, and September 30, of 2019 and 2018 (unaudited)	7

	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018 ~~and 2017~~ (unaudited)	812

	Notes to Consolidated Financial Statements (unaudited)	913

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3439

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4650

Item 4.	Controls and Procedures	4650

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	4751

Item 1A.	Risk Factors	4751

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4752

Item 3.	Defaults Upon Senior Securities	4852

Item 4.	Mine Safety Disclosures	4852

Item 5.	Other Information	4852

Item 6.	Exhibits	4852

Description		Standard Depreciable Life
Land		Not Depreciated
Buildings		~~35 to~~ 40 years
Site Improvements		7 to 10 years

Real estate facilities
Balance at December 31, 2017	$	98,258,516
Facility acquisitions		157,090,441
Balance at December 31, 2018				$	256,042,603
Additions - Student		174,564			254,395
Additions - Senior		128,721			950,617
Balance at September 30, 2018	$	255,652,242
Balance at September 30, 2019				$	257,247,615
Accumulated depreciation
Balance at December 31, 2017	$	(1,254,849	)
Balance at December 31, 2018				$	(7,153,132	)
Depreciation expense		(3,934,413	)		(5,995,928	)
Balance at September 30, 2018	$	(5,189,262	)
Balance at September 30, 2019				$	(13,149,060	)

Property	Property Type	Acquisition Date	Real Estate Assets		Intangibles		Total⁽¹⁾		2018 Revenue⁽²⁾		2018 Property Operating Income⁽³⁾
Charleston – UT	Senior	2/23/18	$	12,296,180	$	994,000	$	13,290,180	$	1,577,586	$	499,614
Cottonwood – UT	Senior	2/23/18		15,353,209		2,020,000		17,373,209		2,123,325		423,340
Wellington – UT	Senior	2/23/18		46,087,489		3,450,000		49,537,489		3,586,614		1,500,635
Courtyard – OR	Senior	8/31/18		83,353,563		9,549,000		92,902,563		1,209,304		616,381
Total			$	157,090,441	$	16,013,000	$	173,103,441	$	8,496,829	$	3,039,970

	Nine Months Ended September 30,
	2018			2017
Cash flows from operating activities:
Net loss	$	(11,260,662	)	$	(4,519,817	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		10,786,193			1,844,525
Increase (decrease) in cash, cash equivalents, and restricted cash from changes in assets and liabilities:
Other assets		(823,490	)		(162,091	)
Accounts payable and accrued liabilities		2,758,122			839,144
Due to affiliates		534,658			1,374,571
Net cash provided by (used in) operating activities		1,994,821			(623,668	)
Cash flows from investing activities:
Purchase of real estate		(170,123,441	)		(103,494,500	)
Additions to real estate		(303,285	)		—
Net cash used in investing activities		(170,426,726	)		(103,494,500	)
Cash flows from financing activities:
Proceeds from issuance of non-revolving mortgage debt		110,105,000			53,000,000
Proceeds from issuance of KeyBank Bridge Loans		51,500,000			39,896,363
Principal payments of KeyBank Bridge Loans		(10,148,136	)		(22,296,363	)
Debt issuance costs		(2,349,937	)		(1,228,799	)
Issuance of preferred equity in our Operating Partnership		6,301,116			5,650,000
Gross proceeds from issuance of common stock		16,798,588			40,063,542
Private offering costs		(1,535,689	)		(3,576,640	)
Public offering costs		(369,831	)		—
Distributions paid to common stockholders		(2,989,432	)		(47,158	)
Distributions paid to preferred unitholders in our Operating Partnership		(9,337	)		(136,282	)
Issuance of noncontrolling interest in our Operating Partnership		—			199,000
Net cash provided by financing activities		167,302,342			111,523,663
Net change in cash, cash equivalents, and restricted cash		(1,129,563	)		7,405,495
Cash, cash equivalents, and restricted cash, beginning of period		10,371,998			2,000
Cash, cash equivalents, and restricted cash, end of period	$	9,242,435		$	7,407,495
Supplemental disclosures and non-cash transactions:
Cash paid for interest	$	3,898,287		$	516,651
Debt issuance costs included in due to affiliates	$	—		$	240,400
Debt issuance costs included in accounts payable and accrued liabilities	$	16,095		$	59,500
Deposits applied to purchase of real estate	$	1,000,000		$	—
Acquisition costs included in due to affiliates	$	1,980,000		$	—
Offering costs included in accounts payable and accrued liabilities or due to affiliates	$	588,161		$	643,768
Non-cash preferred equity issuance in our Operating Partnership	$	63,011		$	1,072,055
Distributions payable	$	653,431		$	190,761
Issuance of shares pursuant to distribution reinvestment plan	$	1,783,686		$	22,257
Public offering costs previously included in other assets	$	722,840		$	—

	Nine Months Ended September 30, 2018			Nine Months Ended September 30, 2017
Pro forma revenue	$	14,912,362		$	4,222,482
Pro forma operating expenses		(19,289,332	)		(6,674,316	)
Pro forma net loss attributable to common stockholders	$	(9,169,887	)	$	(4,584,219	)

Encumbered Property	September 30, 2018			December 31, 2017			Interest Rate			Maturity Date	September 30, 2019			December 31, 2018			Interest Rate			Maturity Date
Fayetteville JPM mortgage loan ⁽¹⁾	$	29,500,000		$	29,500,000			4.20	%	7/1/2024	$	29,500,000		$	29,500,000			4.20	%	7/1/2024
Tallahassee Nationwide mortgage loan ⁽¹⁾		23,500,000			23,500,000			3.84	%	10/1/2024		23,500,000			23,500,000			3.84	%	10/1/2024
Utah Freddie Mac mortgage loans ⁽²⁾		46,905,000			—			5.06	%	2/23/2028		46,905,000			46,905,000			5.06	%	2/23/2028
Portland Freddie Mac mortgage loan ⁽³⁾		63,200,000			—			4.86	%	9/1/2028
Courtyard Freddie Mac mortgage loan ⁽³⁾												63,200,000			63,200,000			4.86	%	9/1/2028
Utah Bridge Loan ⁽⁴⁾		14,351,864			—			6.22	%	2/23/2019		9,596,864			12,195,108			6.05	%	4/30/2020
Portland Initial Bridge Loan ⁽⁵⁾		27,000,000			—			6.25	%	8/31/2019
Courtyard Initial Loan ⁽⁴⁾												27,000,000			27,000,000			6.05	%	4/30/2020
Courtyard Delayed Draw Commitment ⁽⁴⁾												10,969,104			3,619,820			6.05	%	4/30/2020
Debt issuance costs, net		(2,345,183	)		(700,362	)						(1,906,782	)		(2,184,030	)
Total debt	$	202,111,681		$	52,299,638						$	208,764,186		$	203,735,898

2018	$	—
2019		41,351,864		$	—
2020		527,944			48,093,912		⁽¹⁾
2021		679,120			679,120
2022		1,011,295			1,011,295
2023 and thereafter		160,886,641
2023					1,680,592
2024 and thereafter					159,206,049
Total payments		204,456,864			210,670,968
Non-revolving debt issuance costs, net		(2,345,183	)		(1,906,782	)
Total	$	202,111,681		$	208,764,186

	Student Housing			Senior Housing			Corporate and Other			Total
Leasing and leasing related revenues	$	6,415,533		$	7,319,345		—			$	13,734,878
Other revenues	—				1,177,484		—				1,177,484
Property operating expenses		(3,106,101	)		(5,456,860	)	—				(8,562,961	)
Net operating income		3,309,432			3,039,969			-			6,349,401
Property operating expenses - affiliates		441,782			424,474		—				866,256
General and administrative	—			—				1,330,307			1,330,307
Depreciation		2,432,839			1,497,267			4,307			3,934,413
Intangible amortization expense		3,743,640			2,567,736		—				6,311,376
Acquisition expenses – affiliates	—				148,736		—				148,736
Other property acquisition expenses	—				304,483		—				304,483
Interest expense		1,606,050			2,504,035		—				4,110,085
Interest expense – debt issuance costs		51,094			489,310		—				540,404
Other	—				64,699			(696	)		64,003
Net loss	$	(4,965,973	)	$	(4,960,771	)	$	(1,333,918	)	$	(11,260,662	)

Segments	September 30, 2018		September 30, 2019		December 31, 2018
Student housing	$	96,670,106	$	92,678,638	$	94,593,010
Senior housing		172,221,432		174,657,371		174,210,522
Corporate and Other		8,500,811		9,138,203		9,166,083
Total assets	$	277,392,349	$	276,474,212	$	277,969,615

Number Years Held		Redemption Price
Less than 1		No Redemption Allowed
More than 1 but less than 2		90.0% of the Redemption Amount (as defined below)
More than 2 but less than 3		92.5% of the Redemption Amount
More than 3 but less than 4		95.0% of the Redemption Amount
More than 4		100% of the Redemption Amount

Property	Date Acquired	Date Completed	Primary University Served	Average Monthly Revenue / Bed⁽¹⁾		# of Units		# of Beds		Occupancy%⁽²⁾			Date Acquired	Date Completed	Primary University Served	Average Monthly Revenue / Bed⁽¹⁾		# of Units		# of Beds		Occupancy%⁽²⁾
Fayetteville	June 28, 2017	August 2016	University of Arkansas	$	675		198		592		75.2	%	June 28, 2017	August 2016	University of Arkansas	$	630		198		592		77.7	%
Tallahassee	September 28, 2017	August 2017	Florida State University		785		125		434		92.9	%	September 28, 2017	August 2017	Florida State University		777		125		434		93.5	%
Total				$	724		323		1,026		82.7	%				$	700		323		1,026		84.4	%

Property		Date Acquired	Year Built	City, State	Average Monthly Revenue / Unit⁽¹⁾		# of Units		Occupancy%⁽²⁾				Date Acquired	Year Built	City, State	Average Monthly Revenue / Unit⁽¹⁾		# of Units		Occupancy%⁽²⁾
The Wellington		February 23, 2018	1999	Millcreek, Utah	$	4,716		119		89.1	%		February 23, 2018	1999	Millcreek, Utah	$	4,697		119		97.5	%
Cottonwood Creek		February 23, 2018	1982	Millcreek, Utah		3,633		112		69.6	%		February 23, 2018	1982	Millcreek, Utah		3,570		112		80.4	%
The Charleston at Cedar Hills		February 23, 2018	2005	Cedar Hills, Utah		3,789		64		87.5	%		February 23, 2018	2005	Cedar Hills, Utah		3,796		64		93.8	%
Courtyard at Mt. Tabor		August 31, 2018	1992-2009	Portland, Oregon		4,266		286		96.8	%		August 31, 2018	1992-2009	Portland, Oregon		4,345		286		91.5	%
Total	Total				$	4,156		581		88.9	%	Total				$	4,228		581		90.8	%

	Nine Months Ended									Nine Months Ended
	September 30, 2018			September 30, 2017			Change			September 30, 2019			September 30, 2018			Change
Net cash flow provided by (used in):
Operating activities	$	1,994,821		$	(623,668	)	$	2,618,489		$	2,671,590		$	1,994,821		$	676,769
Investing activities		(170,426,726	)		(103,494,500	)		(66,932,226	)		(9,384,698	)		(170,426,726	)		161,042,028
Financing activities		167,302,342			111,523,663			55,778,679			7,053,476			167,302,342			(160,248,866	)

	Payments due by period:										Payments due by period:
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years		Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Debt interest⁽¹⁾	$	64,257,850	$	1,926,828	$	15,328,860	$	15,199,833	$	31,802,329	$	56,595,914	$	1,926,828	$	15,285,611	$	15,090,795	$	24,292,680
Debt principal⁽¹⁾		163,105,000		—		527,944		1,690,415		160,886,641		163,105,000		—		1,207,064		2,691,887		159,206,049
Total contractual obligations	$	227,362,850	$	1,926,828	$	15,856,804	$	16,890,248	$	192,688,970	$	219,700,914	$	1,926,828	$	16,492,675	$	17,782,682	$	183,498,729

For the Month Ended	Total Number of Shares Redeemed		Average Price Paid per Share		Total Number of Shares Redeemed as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet to be Purchased Under the Plans or Programs
July 31, 2019		14,798	$	7.77		14,798		508,737
August 31, 2019	—		—		—			508,737
September 30, 2019	—		—		—			508,737


Exhibit No.		Description

3.1		Amended and Restated Bylaws of Strategic Student & Senior Housing Trust, Inc., incorporated by reference to Exhibit 3.3 to Pre-Effective Amendment No. 3 to the Company’s Registration Statement on Form S-11, filed on April 26, 2018, Commission File No. 333-220646

3.2		Second Articles of Amendment and Restatement of Strategic Student & Senior Housing Trust, Inc., incorporated by reference to Exhibit 3.1 to Form 8-K, filed on June 15, 2018, Commission File No. 333-220646

3.3		Articles of Amendment to Second Articles of Amendment and Restatement of Strategic Student & Senior Housing Trust, Inc., incorporated by reference to Exhibit 3.2 to Form 8-K, filed on June 15, 2018, Commission File No. 333-220646

3.4		Articles Supplementary to Second Articles of Amendment and Restatement, incorporated by reference to Exhibit 3.1 to Post-Effective Amendment No. 4 to the Company’s Registration Statement on Form S-11, filed on July 10, 2019, Commission File No. 333-220646

3.5		Second Articles of Amendment to Second Articles of Amendment and Restatement of Strategic Student & Senior Housing Trust, Inc., incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed on June 14, 2019, Commission File No. 333-220646

4.1		Form of Subscription Agreement and Subscription Agreement Signature Page (included as Appendix A to prospectus), incorporated by reference to ~~Supplement No. 4, dated October 23, 2018, to~~ the Company’s prospectus, ~~dated May 1, 2018,~~ filed on ~~October 23, 2018,~~July 10, 2019, Commission File No. 333-220646

10.1		~~Multifamily Loan and Security~~Amendment to the Dealer Manager Agreement, ~~between SSSHT PropCo SE Division Street, LLC and KeyBank National Association, dated August 31, 2018,~~incorporated by reference to Exhibit 1.1 to Post-Effective Amendment No. 4 to the Company’s Registration Statement on Form S-11, filed on July 10, 2019, Commission File No. 333-220646

10.2		Amendment to the Operating Partnership Agreement, incorporated by reference to Exhibit 10.1 to Post-Effective Amendment No. 4 to the Company’s Registration Statement on Form ~~8-K,~~S-11, filed on ~~September 7, 2018,~~July 10, 2019, Commission File No. 333-220646

~~10.2~~	Multifamily Deed of Trust, Assignment of Rents and Security Agreement, between SSSHT PropCo SE Division Street, LLC and KeyBank National Association, dated August 31, 2018, incorporated by reference to Exhibit 10.2 to Form 8-K, filed on September 7, 2018, Commission File No. 333-220646

10.3		~~Guaranty, by Strategic Student & Senior Housing Trust, Inc. for~~Amendment to the ~~benefit of KeyBank National Association, dated August 31, 2018,~~Advisory Agreement, incorporated by reference to Exhibit ~~10.3~~10.2 to Post-Effective Amendment No. 4 to the Company’s Registration Statement on Form ~~8-K,~~S-11, filed on ~~September 7, 2018,~~July 10, 2019, Commission File No. 333-220646

10.4		~~Multifamily Note, Fixed Rate Defeasance, in the original principal amount of $63,200,000, by SSSHT PropCo SE Division Street, LLC in favor of KeyBank National Association, dated August 31, 2018,~~Advisor Funding Agreement, incorporated by reference to Exhibit 10.4 to Post-Effective Amendment No. 4 to the Company’s Registration Statement on Form ~~8-K,~~S-11, filed on ~~September 7, 2018,~~July 10, 2019, Commission File No. 333-220646

~~10.5~~	First Credit Agreement Supplement and Amendment, by and among SSSHT Operating Partnership, L.P., H. Michael Schwartz and Noble PPS, LLC, as borrower, and KeyBank National Association, as lender, dated August 31, 2018, incorporated by reference to Exhibit 10.5 to Form 8-K, filed on September 7, 2018, Commission File No. 333-220646

~~10.6~~ 31.1*	Amended and Restated Promissory Note, in the principal amount of $56,500,000, by SSSHT Operating Partnership, L.P., H. Michael Schwartz and Noble PPS, LLC in favor of KeyBank National Association, dated August 31, 2018, incorporated by reference to Exhibit 10.6 to Form 8-K, filed on September 7, 2018, Commission File No. 333-220646

~~10.7~~	Omnibus Amendment and Reaffirmation of Loan Documents, by and among SSSHT Operating Partnership, L.P., Noble PPS, LLC, Strategic Student & Senior Housing Trust, Inc., SSSHT Student Holdco, LLC, SSSHT Senior Holdco, LLC, SSSHT TRS, Inc., Encore Capital Group, LLC, and KeyBank National Association, dated August 31, 2018, incorporated by reference to Exhibit 10.7 to Form 8-K, filed on September 7, 2018, Commission File No. 333-220646

~~10.8~~	~~Amendment No. 1 to the Amended and Restated Advisory Agreement, incorporated by reference to Exhibit 10.8 to Form 8-K, filed on September 7, 2018, Commission File No. 333-220646~~

~~10.9~~	Guaranty of Completion, by Strategic Student & Senior Housing Trust, Inc. for the benefit of KeyBank National Association and any subsequent holder of the Note, effective as of August 31, 2018, incorporated by reference to Exhibit 10.1 to Form 8-K, filed on October 12, 2018, Commission File No. 333-220646


~~Exhibit~~ ~~No.~~	~~Description~~

10.10*	~~Amendment No. 1 to the First Amended and Restated Limited Partnership Agreement of SSSHT Operating Partnership, L.P.~~

31.1*	Certification of Principal Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*		Certification of Principal Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1*		Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002

32.2*		Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002

Exhibit No.		Description

101*		The following Strategic Student & Senior Housing Trust, Inc. financial information for the ~~Nine Months Ended~~three and nine months ended September 30, ~~2018,~~2019 formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated ~~Statement~~Statements of Equity, (iv) Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements.The instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.

104*		The cover page from our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, has been formatted in Inline XBRL.

	STRATEGIC STUDENT & SENIOR HOUSING TRUST, INC.
	(Registrant)

Dated: November ~~14, 2018~~12, 2019	By:	/s/ Michael O. Terjung
		Michael O. Terjung
		Chief Financial Officer and Treasurer
		(Principal Financial and Accounting Officer)